Rising bills are ruining Christmas for almost half of us
MILLIONS of Australians will be cutting back on Christmas this year because of rising bills and a new study shows over half of us are sacrificing gifts.
IT’S supposed to be the most wonderful time of the year — but new research shows Aussies are cutting back on Christmas in their millions.
Feeling the pinch from rising bills, the Kantar TNS study, findings show almost half of us intend to sacrifice the number of gifts we give this Christmas.
Commissioned by life admin company iSelect, the findings also show that those planning to cut back on presents intend to give an average of 11 less gifts this year due to the rising costs of bills.
It also suggests couples may be sacrificing gifts to each other first, with 1.5 million Australians having sacrificed something for their partner over the past year due to the cost of household bills.
Of those couples spending less on each other this year, more than two-thirds (67 per cent) couldn’t afford their preferred gift for their partner.
Laura Crowden, spokeswoman for iSelect, said the flow-on effect could be serious for small business owners and major department stores alike.
“With so many Australians spending less this Christmas, retailers may find the ‘Christmas bump’ that their business depends [on] simply doesn’t eventuate this year,” Ms Crowden said.
“This could mean that many small businesses will struggle to stay in the black at work while they also juggle their own cost of living pressures at home.”
Recent data from the Australian Securities and Investments Commission (ASIC) shows the average Australian will spend $1079 each on Christmas, while further research from lender SocietyOne suggests we will each spend $500 on presents alone, before factoring in costs like entertaining and travel.
However, Kantar TNS research from earlier this year showed Australians spend an average of
$2374 on their monthly mortgage, rent and household bills, an increase of almost 40 per cent in the past two years, compared to around a 20 per cent increase in household income.
And, energy bill price rises show no signs of slowing down year-on-year. Prices jumped 15 per cent in the September, according to Commonwealth Bank estimates.
“This research underlines that over six million Australians (42 per cent) are feeling overwhelmed by their rising bills and expenses and that the majority of Aussies (51 per cent or nearly eight million) believe their household bills are preventing them from living their life to the fullest,” Ms Crowden said.
She said the best way to reduce bill stress was to shop around for a better deal.
“Our research tells us that those Aussies who had switched providers and got a better deal reported saving an average of $790 a year ... that’s a lot of stocking fillers and shrimps for the barbecue.
“Reviewing your energy, insurance and personal finance costs now can result in instant and long term savings for your household ... meaning you can have your Christmas ham and eat it too.”
benjamin.graham@news.com.au
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