Australians are split down the middle when it comes to seasonal spending, with an interesting mixture of impulsive and restrained shopping habits coming to light in research from consumer advocate, Credit Savvy .
Just over half of Australians (54%) don’t set a budget for the holiday season and one in three spends more than they can afford during this time.
The credit hangover lingers into the New Year, with nearly a quarter (22%) of consumers acknowledging that it takes them three or more months to recover from overspending. One in five Australians are nervous about the impact of holiday spending on their credit score.
On the other hand, 52% save during the year specifically for the holiday season, and just 7% take out a new credit card to pay for spending during this period.
When it comes to payment, cash is surprisingly king, with consumers paying for gifts and holiday purchases largely with cash, while 43% indicated that they would use a credit card. 12% of consumers will look for a new credit card in the New Year to take advantage of balance transfer offers.
Credit Savvy Managing Director, Dirk Hofman said, “There’s definitely a difference in attitudes towards holiday spending among Australians. A little more budgeting and planning would probably help people before and throughout the season, however it’s encouraging to see that the message of actively managing your credit score and standing is starting to get through. Just a few years ago, awareness of credit scores was very low so we’re pleased to be making such strong inroads into helping people manage their credit reputation.”
Credit Savvy partners with Experian to offer a free credit score service, with free monthly re-scores, a range of education tools and a credit marketplace. It surveyed its member base to gauge attitudes towards holiday season spending.
About Credit Savvy
Credit Savvy is a new digital initiative that aims to help Australians make savvy financial decisions by understanding their credit status and how credit works. Credit Savvy provides consumers with free access to their credit score, credit file information, credit monitoring & a credit card marketplace. It works with global credit reporting body Experian.
For more information, please visit www.creditsavvy.com.au
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