Feb 17, 2023 5:48:05 PM

3 Steps To Curing A Christmas Debt Hangover

Topics: Debt Consolidation, Financial Health, Budgeting 0

The post-holiday season can be a tough time for many Australians, as credit card statements arrive and a true assessment of Christmas overspending is made. If you’re facing a Christmas Debt Hangover after overspending during the holidays, the next few months will be critical to ensuring you get your finances back on track again. To help you manage your Christmas debt, and to ensure you avoid overspending this year, here are 3 tips from Mortgage Express.

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1.    Take a fresh look at your budget

Sticking to a budget will be more important than ever over the coming months, as you work hard to pay down your debt. Once you’ve assessed how much debt you have to repay, take a fresh look at your budget and work out the maximum amount you can afford to repay each month from your household budget.

You can use something as simple as a spreadsheet – or download this handy budget planner template – to track your income and expenses. By tracking how much money you earn, how much you can afford to spend each month, and how much you need to save, you’ll avoid compounding your debt problem and have a workable solution to clearing your debt.

2.    Avoid taking on any more debt

If you already have significant debt to repay, adding to it with even more spending is only going to make things worse. Before your debt spirals out of control, try following these simple principles: 

  • If you can't afford it without a credit card, don't buy it
  • Save for a rainy day with a fallback emergency fund.
  • Pay off your credit card balances in full.
  • Cut-out the wants, focus on the needs.  
  • Everything is better with a budget.
  • Don’t use your credit card for cash advances.
  • And limit the number of credit cards you have.

3.    Start saving for the next holiday season

It might seem crazy to be thinking about Christmas shopping in February, but there’s no better time. Because the best way to avoid a Christmas Debt Hangover at the start of next year, is to plan now how you’re going to shop this holiday season. Here are some helpful tips:

Small, consistent savings throughout the year can make a big difference when it comes to spending this holiday season.  

Get help with your finances

The festive season may be just a distant memory, but many Australians will be repaying their holiday spending well into the new year. If you’re stuck with a Christmas Debt Hangover and would like help getting your finances back on track, contact Mortgage Express today and we’ll connect you with a mortgage broker in your area. And get personalised financial advice that is relevant to your lifestyle and situation.

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AFCA) | Member of Choice Aggregation Services.