Be wise this Christmas, experts urge

With many pensioners and low-income households set to receive a one-off bonus from the government, consumers have been advised to be prudent with the windfall.

The Sunday Herald Sun notes that while the government has introduced the cash offer in an attempt to keep the registers ringing as Christmas gets underway, younger families will do well to pay off credit card debts or stash the money in savings accounts.

However, Savanth Sebastian, a money expert at CommSec, told the paper that pensioners without debts would probably be better off spending the cash, which amounts to $1,400 for single retirees and $2,100 for couples.

Meanwhile, Adrian Emery, general manager sales and marketing at AXA, suggested: “With some <a href=”//">credit card interest rates hovering at 20 per cent, the best way to spend your government bonus is to reduce your interest or pay off your credit card."

Earlier this month, retail giant Gerry Harvey told the paper that the bonus would be a welcome boost to the economy and would help to give people a little more confidence about their financial situation in the lead up to Christmas.ADNFCR-1761-ID-18865411-ADNFCR