Kiwis are now facing a mountain of debt after Christmas, according to financial comparison site Finder’s latest report.
Its survey of 2,117 Kiwis showed that 44% of the population used some form of credit to fund their Christmas shopping. It also found that the average Kiwi spent $319 on gifts, with around $533 million paid for on credit – increasing the national spend to a shocking $1.17 billion.
It also found that 32% of Kiwis used a credit card when shopping at Christmas, while 8% used “buy now, pay later” options such as Afterpay and Laybuy. Meanwhile, 53% relied on their savings to fund their Christmas expenses.
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Angus Kidman, global editor-in-chief of Finder, said the gift-buying frenzy at Christmas left many Kiwis with lighter pockets.
“The pressure to overspend has left many nursing a New Year ‘financial hangover’. January is when credit card and other bills begin to land, leaving many regretting what they’ve spent on Christmas,” Kidman said.
“It’s always advisable to pay off your credit card balance as soon as possible. That way it’s not sitting there building up interest,” he advised. “If you have a large balance and you think you’ll need some time to pay it off, consider a 0% balance transfer card. But make sure to pay off all your debt during the interest-free period so you don’t get stung with higher charges down the track.”
He also advised Kiwis to prioritise their payments, use their savings, and consider a balance transfer card in order to pay their debt.
