The easiest ways you can avoid being left with a financial hangover after Christmas
Retailers are already in full force trying to get you to spend big and worry later. So how can you avoid spending too much money this festive season? TRY THESE SIMPLE TRICKS.
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THE Christmas debt hangover is one that lingers for weeks, even months.
Unlike an alcohol-induced hangover that usually subsides within about 24 hours, a debt hangover likes to stick around.
And with just over six weeks until Christmas – frightening I know – retailers are in full force trying to get shoppers to spend up.
This in turn makes it so appealing to spend now and worry about it later.
It can end up being like a night out on the town, ordering up those espresso martinis at the bar and not thinking about the consequences until the next day.
But for shoppers the pain comes in the new year in the form of financial heartache.
The banks will be working in overdrive in the coming weeks to market those “one-off” credit card incentives to suck shoppers in to sign up and spend frivolously.
Christmas seems to roll around far too quickly and as a result many of us aren’t financially equipped.
In December last year Australians’ credit card debt totalled $51.2 billion and $31.6 billion was accruing interest.
That’s frightening stuff considering many credit card debts attract interest rates above 20 per cent.
As for buy now pay later schemes, well they are a force to be reckoned with.
Latest Australian Securities and Investments Commission stats found in the 2017-18 financial year more than two million Australians had signed up to these schemes including Afterpay and Zip Pay.
So it’s become all too easy to spend up big in the lead up to Christmas and worry about paying it off later.
And this strategy for many people simply doesn’t work.
We end up buying too much crap that we don’t need for people who probably won’t use it and then we are left mopping up the financial mess later.
While it might be a little too late to set up a savings plan, it’s certainly not too late to rein in your spending.
A good strategy includes opting to do a Kris Kringle or Secret Santa.
Throw all your family members into a hat and draw them out so each person is left only buying one gift, not heaps of crappy ones for every long-lost aunt.
And work out what you are going to buy for each person.
The new fee hitting Australian shoppers
Pre-Christmas sales have become a big deal for retailers so it’s easy to snare plenty of good deals before Christmas Day.
There’s plenty of important shopping sales to come including Singles Day, Click Frenzy, and Cyber weekend including Black Friday and Cyber Monday.
Last year I did all my Christmas shopping in November – I barely opened my wallet in December and had ticked off my entire shopping list.
Nearly every item – unbeknown to my family and friends – was bought on sale.
And I avoided credit, leaving me minus a financial hangover come January 1.
Happy shopping!
Originally published as The easiest ways you can avoid being left with a financial hangover after Christmas