The festive season is a time of joy, celebrations, and giving, but it can also bring unexpected financial stress. ASIC’s Moneysmart research shows that Aussies are planning to spend an average of $783 this Christmas on gifts, holidays, and celebrations. While many people set a budget, not everyone sticks to it leaving some struggling with post-Christmas debt that lingers well into the new year.
At Just Budget, we understand how easy it is to overspend during the holidays, especially when using credit cards or Buy Now, Pay Later (BNPL) services.
Below are common holiday budgeting challenges and practical solutions to help you stay on budget this Christmas.
1. The Reality: Most People Go Over Budget
According to Moneysmart, 74% of Australians set a Christmas budget, yet only 29% successfully stick to it. Overspending often happens due to:
- Rushed, last-minute shopping.
- Underestimating the cost of gifts, food, and travel.
- Temptation to splurge during holiday sales.
Solution: Use a Budgeting Tool
A budgeting tool or app can help you monitor expenses in real time. Allocate specific amounts for gifts, food, decorations, and travel, and stick to your limits. Starting early also allows you to spread costs over several weeks rather than cramming everything into December.
Tip: Download a free budgeting app to track spending or use a simple spreadsheet to record every expense.

2. The BNPL Trap: Buy Now Pay Later Can Lead to Hidden Debt
BNPL services like Afterpay or ZipPay are popular during the holidays, with 16% of Aussies planning to use them this year. While convenient, BNPL can quickly lead to multiple repayments that become unmanageable after Christmas.
Did You Know? If you’re struggling with BNPL debt, you can include it in an informal debt arrangement. Just Budget helps consolidate debts into one manageable payment, reducing stress and financial pressure.
Solution: Pay with Cash or Debit Card
Where possible, avoid using credit or BNPL for Christmas spending. If you must use these options, ensure you have a clear repayment plan in place to avoid late fees and interest.
3. Unexpected Expenses: Be Prepared for Surprises
Even with careful planning, unforeseen expenses like last-minute gifts, additional travel costs, or a higher grocery bill can derail your budget.
Solution: Set Up a Holiday Contingency Fund
Setting aside a small buffer in your Christmas budget can help you absorb any surprises without relying on credit. Even $50-$100 can make a difference if unexpected costs arise.
Tip: Start saving early next year by putting aside a small amount each month into a holiday fund.
4. Post-Christmas Regret: Avoid the Debt Hangover
The research shows 28% of Aussies regret their holiday spending. Worse yet, it takes nearly 4 months for some to repay a $1,000 debt—meaning Christmas expenses can linger until Easter.
Solution: Have a Repayment Plan Ready
If you do overspend, take action immediately to avoid falling deeper into debt. Prioritise paying off high-interest credit card balances first or consider consolidating your debts into one manageable repayment plan. Just Budget offers solutions like:
- Debt consolidation: Combine debts into a single payment with lower interest.
- Informal debt agreements: Manage repayments without impacting your credit score.
5. Start Early to Save Big
Shopping early isn’t just about avoiding stress—it also gives you time to take advantage of deals and discounts throughout December. By spreading out your spending, you’re less likely to rely on credit or BNPL.
Tip: Plan for sales like Boxing Day, or take advantage of end-of-season discounts to grab bargains for next year.
Christmas spending doesn’t have to derail your finances. By creating a realistic budget, tracking expenses, and being mindful of credit and BNPL options, you can enjoy a stress-free festive season. If you find yourself struggling with post-holiday debt, Just Budget is here to help.
We offer personalised solutions to help you manage your debts and regain financial control. Let this Christmas be a time of joy, not financial worry.
Ready to take control of your finances? Contact Just Budget today for expert advice and support.