With Christmas now officially less than three months away, Aussies across the nation are gearing up for the busiest time of the year and that means making room in the budget for extra spending.
For many shoppers, while the festive season promises tinsel and champagne, there may also be the promise of a credit card debt hangover.
But with the hopes of putting Christmas debt to an end, peer-to-peer lender, Society One have launched their ‘when it happens’ campaign, aimed at encouraging Aussies to avoid relying on their credit card when multiple expenses arise and instead look for alternative solutions, like a low rate personal loan.
“The campaign is an honest reflection of the way that even joyful moments can sometimes present financial stress to otherwise financially-fit people, as a result of unexpected costs,” said CEO of Society One, Mark Jones.
“‘It can happen to any of us, but there’s no need to add extra stress by racking up high-interest credit card debt.”
According to ASIC, during the Christmas period last year, Aussies racked up an average of $1,666 in credit card debt, with 36% reportedly using their plastic to cover the cost of Christmas.
While the campaign can remind some Aussies to put down their plastic before the festive season rolls around, others may look to take care of the damage in the new year.
Rather than trying to juggle multiple credit card debts, many Aussies have instead taken charge of their finances with the help of a debt consolidation loan, which according to Jones, accounts for more than half of the of the personal loans issued by Society One.
Mozo’s Product Data Manager, Peter Marshall agrees that a debt consolidation loan can work wonders for Aussies feeling the heat from Christmas debt.
“For people needing to get a handle on their debt, a debt consolidation loan can be a much better option than a credit card, because you can usually secure a lower interest rate, and there's a structured plan to pay down the debt,” he said.
“Just remember that you’ll need to pick a loan that has both flexibility and low fees. Having the ability to make extra repayments is also a plus because it’ll help you get out of debt faster and cut down on interest.”
So whether you’re after a personal loan to get through Christmas or need to pay off your debt, head on over to our personal loan comparison tool to find the right loan for you.