Finder money expert and award-winning communications specialist Taylor Blackburn has shared the “alarming” amount of Australians who have gone into debt over Christmas.
Blackburn shared data from a Finder survey on Tuesday and said it was a “very expensive Christmas” for many as 38 per cent of Australians “put it on credit”.
The new research revealed 7.7 million Australians have “racked up a Christmas debt” with roughly 600,000 people saying it will take them 12 months or more to settle up.
Speaking to Sky News Australia on Wednesday, Blackburn said many people will be “paying for this Christmas when it’s time for next Christmas.”
“You make some sacrifices and spend a little more than you should and then have to deal with the aftermath… it’s alarming to see this many people in this situation, but there are options,” he said.
About 55 per cent of Generation Z said they used credit to fund Christmas, while 43 per cent of millennials said they did the same.
One of the options Blackburn put forward to consider when paying off high-interest debt was a “balance transfer” as the “best balance transfer cards give you about 32 months, almost three years, of zero per cent.”
As the average credit card interest rate is 18 per cent, Blackburn suggests those struggling to reach out to the National Debt Hotline on 1800 007 007.
“You can think of James Bond to help you remember that if you’re in that situation” Blackburn joked, referencing the fictional secret agent’s 007 codename.
“They can help and they have helped millions of Australians,” he said.
However, “the best thing you can do to keep yourself from getting in debt, or to pull yourself out of it, is to really understand what’s going in and what’s coming out, how much you’re spending, how much you’re earning and really stay within those means.”
“For some who have gone in debt this Christmas it can be good advice to maybe cushion the blow next year… staying within your means when it comes to gift giving, doing things that are big on thought and maybe not as big on cost.”
It comes as shadow treasurer Angus Taylor claimed Prime Minister Anthony Albanese lacks “any credibility” on cost of living relief amid accusations the government has not done enough to ease pressure on inflation.
(SKY NEWS)
