Avoid the Boxing Day credit card hangover

Queenslanders have been urged to exercise caution if headed to the Boxing Day sales, with average personal credit card debt after the holiday season tipped to reach $1,666.

RACQ Bank spokesperson Kirsty Clinton warned shoppers not to spend unnecessarily.

“Christmas is one of the most expensive times of the year, however that doesn’t stop many people from hitting the shops the very next day on Boxing Day,” Ms Clinton said.

“People need to remember, it’s only worth buying something on sale if it’s something you need and planned to purchase before seeing it at a bargain price.

“Just because it’s 50 percent off, doesn’t mean it’s money worth spending. You don’t want to start the new year in unnecessary debt.”

Ms Clinton said the Australian National Retailers Association estimated Australians would spend $17.6 billion between Boxing Day and mid-January.

“The financial hangover of Boxing Day will be around long after the leftovers and the sales are gone,” she said.

“While 82 percent of people will pay off their Christmas credit card debt within six months, four percent will take more than two years to clear the debt, and some people even admit they’ll never be able to pay it off.”