Loan and Equity Help

Aussies planning on funding Christmas by using credit cards are being urged to ensure they pay off the balance as soon as possible.               

Those considering how they will fund their expenditure over the Christmas period are being advised to do so with caution.

Chris Whitehead, chief executive of Credit Union Australia has suggested that those concerned about affording all the food, gifts and other festive products should draw up a list of everything that can be bought in advance.

Next they should stick to a budget in order to calculate how much cash is required for such items, making them less likely to go out and spend on impulse purchases.

In taking this action, he tells the Australian Associated Press that people should be able to avoid starting the new year in a significant amount of credit card debt.

"Many shoppers use credit cards to make their Christmas purchases - thinking they can pay the balance off in the new year," Mr Whitehead points out.

However, he claims that although people may be looking to make use of the interest free period deals attached to cards, when such offers end those who have not taken action to make repayments may find themselves "suddenly financially overcommitted".

"The key is to ensure you are able to pay the balance in full each month, avoiding surmountable debt issues," he adds.

And despite recent research indicating overall growth in outstanding card balance has slowed down, "there is no room for complacency and consumers should continue to pay off any existing credit card debt and spend smartly over Christmas".

Shopping around for the best offers on goods was among the tips for saving the Credit Union Australia head also recommended.

His comments follow a study carried out by Access Economics revealing that residents in Southern Australia currently have a strong willingness to spend money, with expenditure in the state due to return to the peaks seen in 2007 by the middle of 2011.