Christmas Debt is precisely like average debt but covered in tinsel and colourful lights. The difference between Christmas Debt and traditional debt is that we feel compelled or even pressured to take it on as a society.

Christmas Presents

Financial experts are sending a warning out across the Christmas decorated Australian landscape after a survey from delivered results showing that nearly 24 per cent of Australians will go into more outstanding debt over the holidays, with the average Australian owing credit card and pay-after companies up to $570.

With even a relatively small amount of $570 being owed, if those debts are not paid off in full quickly, they can balloon quickly due to high-interest rates. According to, the average Australian credit card interest rate is 19.94% which means that $570 could turn into over $1500 in debt in less than six months.

Out of the 1000 people surveyed by, over half said that they didn’t budget for Christmas and felt it was necessary to spend $700 on gifts, food, and decorations.  While there is immense pressure from retail to “spend, spend, spend” during the festive time of year, one should be gorging on Christmas pudding, not Christmas Debt.

The table set for Christmas dinner

Planning for this Christmas might be challenging but starting a plan for next year will be the key to making sure that Christmas Debt is not on your holiday shopping list. Simple tricks like buying things on sale throughout the year for gifts, or making your own, is an easy way to ensure that the holidays are filled with time with friends and family and not bills (Editor Note: Unless your family has several members named Bill, then those Bills are significant to spend time with).

We hope that you have a magical Christmas and our present to you is that our team of experts are ready to help with your debt if you need the extra help.

We wish you a very Merry Christmas from the entire team at Credit Connection.

Not many sleeps until Christmas now, and that means it’s finally time to buy Christmas presents for many. Cutting this fine to the big day means you might blow out the Christmas budget, but with a few little tips, you don’t have to.

Buying presents for your nearest and dearest can be daunting during the best of times, but if you are trying to keep your budget tight for savings, investments, or retirement, they can be a burden.

A woman opening a christmas present that is unsure about the gift.


Put the pitchforks down! Regifting is not a “dirty word”. There are plenty of things that you might have that you don’t need or want that would be treasures to others. Being thoughtful is way more rewarding than blowing out the Christmas budget.

Split the costs

You might not be the only one in your family or friend circle trying to “make those dollars work”. Another great option is to combine economic forces to purchase a gift for a mutual friend or family member.

The Christmas Budget Plan

It might be a little too late for this one, but it’ll work a treat for next year. Start planning a gift plan early in 2022; that way, you’ll be able to pick things up at sales during the year and stretch the Christmas expenses over the whole year. Your credit cards and bank account will thank you. A bonus is that when December rolls around, you’ll already have your Christmas shopping done while others will have to brave the craziness of the shopping centres, and you can sit back and relax.

Group of friends helping each other out in the garden

Service or Skill

The chances are high that when you were a kid, you made a coupon/gift certificate book for a parent on either Mother’s or Father’s Day that said things like “One free breakfast in bed” or “Mowing the lawn without complaining”.

It’s not corny to bring that back. If you have a skill or provide a service, offering that to friends and family as a gift could be a fantastic gift and help them save some money as well. A win-win for everyone.

There are many ways to keep the Christmas Budget on the “nice list” this year. While these tips are more general, we understand that personal finance is different for everyone. If you would like one of our team of experts to help you get your finances into New Year’s shape, contact us here.

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