Top tips to budget for the festive season.

They say that Christmas is the most wonderful time of the year, and you’ll hear no disagreements from the team here at Beyond Bank. From festive feasts to gift giving, there’s a lot to love about the holiday season. What’s not so fun, however, is the damage that Christmas can inflict on your bank balance. With presents to be purchased for friends and family, many of us find our budgets being stretched thin or our savings depleted.

Fortunately, there are a few simple ways that you can better budget for Christmas, and it all starts with understanding how Australians spend.

How we spend at Christmas.

The Australian Securities and Investments Commission (ASIC) published a report^ that breaks down exactly how Christmas is funded, and the results give a clear insight into how best to budget. With the average Australian spending $955, it’s not surprising that roughly 75 per cent dip into their savings in order to splurge on loved ones.

If this is the category that you find yourself in, the best tip is to start shopping early. There’s no need to wait until the mid-December rush if you know what you’ll be getting for friends and family. Plus, if you keep an eye out in stores and online, you may even be able to get the same present at a better price earlier in the year, reducing your Christmas spend.

Of course, not everybody has the savings necessary to pay for Christmas gifts, which is why another 36 per cent put purchases on a credit card, while 4 per cent take out a loan. This can be a great way to quickly get hold of the cash, but there is a danger of accruing debt in the process.

According to ASIC, the average post-Christmas credit card debt is $1,666, and only a little over 80 per cent of Australians will be able to pay all of that off in six months or less. This means that many people are racking up additional interest on top of their Christmas purchases, making it even harder to completely pay off their debt.

One way to potentially help you quickly pay off your debt is to look for a credit card with a longer interest-free period. This is where Beyond Bank’s Low Rate Visa Credit Card can help.

The Low Rate Visa Credit Card.

When you’re putting Christmas presents on a credit card, you want to give yourself the longest possible time to pay your debt off without any extra interest. Beyond Bank’s Low Rate Visa Credit Card comes with up to 62 interest free days on purchases#, along with credit limits starting from $1,000.

Even after the interest-free period has elapsed, you’ll still be able to enjoy a competitive interest rate* plus you’ll enjoy features like payWave and Apple1, Google2 and Samsung3 Pay.

To find out more, get in touch with the Beyond Bank team today.

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^ASIC’s MoneySmart Australia’s Christmas Spending Infographic, 2017

#Interest free periods on purchases do not apply if you do not pay your closing balance (which includes any balance transfer) shown on your credit card statement for the current and previous statement periods in full by the applicable due date.

*Current interest rates can be found at: https://www.beyondbank.com.au/interest-rates/credit-cards.html

1Apple®, Apple Pay®, iPhone®, Apple Watch®, iPad® and Mac® are trademarks of Apple Inc. Apple Pay is available on select Apple devices.

2Google PayTM are trademarks of Google Inc. Google Pay is available on select Android devices.

3Samsung and Samsung Pay is a trademark of Samsung Electronics Co. Ltd. Samsung Pay is available on select Samsung devices.

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Terms, conditions, fees, charges and normal lending criteria apply. For full terms, conditions, fees and charges, please review our Financial Services Guide, Product Guide and Fees and Charges Guide. These guides are available at https://www.beyondbank.com.au/about-us/disclosures/disclosure-documents.html and will be provided at the time of acquiring the product or upon request.
This information has been provided without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs. All loans are provided by Beyond Bank Australia, a trading name of Community CPS Australia Ltd, 100 Waymouth Street, Adelaide, SA 5000 (ABN 15 087 651 143, AFSL / Australian Credit Licence 237856).


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