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.
Also in Saving & Budgeting
1 Apple and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Apple Pay works with iPhone 6 and later in stores, apps and websites in Safari; with Apple Watch in stores and apps; with iPad Pro, iPad Air 2 and iPad mini 3 and later in apps and websites; and with Mac in Safari with an Apple Pay enabled iPhone 6 or later or Apple Watch. For a list of compatible Apple Pay devices, see here.
2 Google Pay is available on all non-rooted Android devices (Lollipop 5.0+). For full Terms and Conditions, view here.
3 For a full list of compatible Samsung Pay devices and Terms and Conditions, visit here.
^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
This information has been provided without taking into account any of your objectives, financial situation or needs. You should consider whether it is suitable for your circumstances before acquiring this product.
All loans are provided by Beyond Bank Australia Ltd ABN 15 087 651 143 AFSL/Australian Credit Licence 237856. © 2023.
