How to spread the cost of Christmas this holiday season

Polly Fleeting

27 Nov 2019

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For many Aussies the Christmas period means carols, family, gifts and food comas, but for some, as December creeps closer and closer, so does the anxiety of its price tag. 

The fear of racking up credit card debt and paying too much interest often rears its head over the holiday season, but if you’re savvy you could save yourself from a financial headache once the celebrations are over. 

“Money can fly out the door during the silly season at an alarming rate, what with the purchasing of gifts, festive season food, an influx of social events and Christmas season travel,” Mozo Director, Kirsty Lamont said. 

“While it’s easy to get caught up in the spirit of the season, the ghost of Christmas can very much come back to haunt you in the new year.” 

If you consider yourself a bit of a Christmas spender, finding the right credit card for you is crucial to ensure you aren’t blowing your budget because of huge interest repayments. 

RELATED GUIDE: Credit cards for shoppers 

At the moment there are plenty of hot 0% purchase rate offers out there on credit cards, meaning you could snag a deal where you don’t pay interest on purchases for a certain period of time!

Don’t know where to start? Check out a few interest free credit cards that could be the perfect addition to your wallet this silly season. 

Interest Free Credit Card Offers 2019

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Citi Platinum - Purchase Rate Offer
  • 0% purchase rate for 13 months (revert rate 21.49%)

  • Reduced $49 annual fee in the first year ($149 after)

  • Rewards program

The Citi Platinum (Purchase Rate Offer) card could both save you and reward you all at once. Not only does this card have a 0% purchase rate for the first 13 months (21.49% revert rate), there is also a rewards program attached to it which could give earn you 1 Citi point per $1 spent on certain purchases. Want to save a little more? Well you can! Citi reduces the annual fee from $149 to $49 in the first year: that’s an extra $100 left in your pocket!

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Suncorp Clear Options Platinum
  • 0% purchase rate for 14 months (revert rate 20.74%)

  • Rewards program

  • Complimentary travel insurance and concierge

Suncorp’s Clear Options Platinum card is a rewards credit card with a 0% purchase rate for the first 14 months, talk about a hot deal! You’ll be able to earn up to 1.25 points when you spend using the card, and make use of complimentary travel insurance and 24/7 concierge. While this card has a $129 annual fee, Suncorp has you covered in your first year as they drop the price to $49. You can get rewarded and save on fees and interest all on the same card.

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Virgin Money Virgin Australia Velocity Flyer Card - Purchase Rate and Balance Transfer Offer
  • 0% purchase rate for 14 months (20.74% revert rate)

  • Receive $129 Virgin Australia gift card every year

  • Reduced $64 annual fee in the first year

If you’re looking for an interest free credit card offer with a few little bonus perks, the Virgin Money Virgin Australia Velocity Flyer Card (Purchase Rate Offer) may be the one for you. With a 0% purchase rate for 14 months and a reduced annual fee in your first year, this card could really lighten your pocket. Want a card that gives you more? Well, with this Virgin Australia credit card enjoy up to 0.66 Velocity points when you spend, as well as a $129 Virgin Australia gift card every year as a cherry on top.

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Citi Clear Platinum
  • 0% purchase rate for 9 months (14.99% revert rate)

  • No annual fee in your first year

  • 2019 Mozo Experts Choice Awards winner^

While the 0% purchase rate for the first 9 months on Citi’s Clear Platinum is pretty attractive, you can also breathe easy knowing that it has a relatively reasonable 14.99% revert rate as well. And if you just can’t stand hefty fees, you’ll likely be pleased to know that there is no annual fee on this card in your first year - that’s right $0. It’s no wonder that this card was named best Low Rate Platinum Credit Card in the 2019 Mozo Experts Choice Awards.

^Find out more about the 2019 Mozo Experts Choice Awards for Credit Cards. 

What are some other options this Christmas? 

It’s no secret that credit cards aren’t always the first choice for Aussies when it comes to shopping. Buy Now Pay Later (BNPL) has exploded in popularity, with a whole bunch of platforms hitting the Aussie market and even banks jumping on board by rolling out their own instalment options. 

A recent study into BNPL conducted by Mozo found that 27% of respondents intended to charge their Christmas purchases to their BNPL account, making it the most popular payment option amongst account holders. 

The benefit of BNPL is that you pay back your debt in regular instalments over an allocated period of time, all of which is interest free. 

So whether you opt for a 0% purchase rate credit card offer or BNPL to pay for your Christmas expenses this year, make sure you are ready to start paying down those debts as soon as the new year hits. Because let’s be real, you don’t want to start off the new decade on the wrong financial foot. 

RELATED ARTICLE: Hold your reindeers! 1 in 4 Aussies plan to pull the reins in on Christmas spending 

If you still want to weigh up your credit card options, hop over to our credit card comparison table or read up on our handy guides for all the tips and tricks you need. 

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