Financial Troubles in Christmas 2018
The information contained within the blog was based on various sources including Mozo, news.com.au, gumtree.com.au, and www.commbank.com.au
While the coming Christmas may be a time of joy and festivities a nightmare statistic of nearly 1 in 4 of Aussies from Finder.com won't be able to spend a single dime (or have already blown the lot) on the special occasion at risk of not making their mortgage repayments. Data shows that $1325 is the average spend for Aussies with $1727 in average credit card debt during the silly season; Mozo predicts $31.9 billion in credit card debt. With the Australian home loan average at $395 800 that is $302 billion worth of mortgages at risk.
Additional statistics include (according to Gumtree) average spend of $670 on eight Christmas presents amounting to $9.8 billion.
With extra financing for the food, holidays, and the traditional presents discipline and limiting your spending may need to be in effect for your family. Borrowers that have a small mortgage buffer should be wary about netting any more debt. New-fangled 'Buy now, pay later' schemes such as Afterpay, Zip Money, and Zip Pay have resulted in nearly $1 billion of debt as the credit provider isn't required to check if you can make the repayments before they sign the loan off as described by the report from the corporate regulator released last week.
If Christmas spending has you stressed there are ways to combat the financial woes in advance:
-Buy second-hand gifts. While not the usual course of action for many there are jewels (hidden and obvious) to be found in the second-hand marketplace other than the shopping malls. Post-op stores and Gumtree is a great example as many of the listings can be bought for way less and may not be found at your K-mart or Target.
- Wrapping paper. While a boon for some it may come as a surprise to see just how much money could be saved.
- Gift something other than material objects. Giving your time to a cause or as a favor for a friend or a loved one may be more representative of the spirit of giving rather than the spirit of buying an object that may not be worth the time and money invested. This can also be expressed through buying tickets to events that you and family can enjoy together rather than the singular present for everyone.
- Budgeting. The good old budgeting technique that involves you analyzing available funds and allocating it accordingly may be overlooked for its 'obviousness' but can easily be one of the most important tools during these trying times.
The information contained within the blog was based on various sources including Mozo, news.com.au, gumtree.com.au, and www.commbank.com.au
