Aussies overspending during Xmas facing growing credit card debt

Aussies Overspending During Xmas Facing Growing Credit Card Debt

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance), was featured in Broker Daily in January 2025 highlighting a growing post-Christmas debt crisis, with thousands of Australians entering the new year carrying higher credit card balances after festive overspending.

Research from comparison site Finder found that 8 per cent of Australians, equivalent to around 1.7 million people, were facing growing credit card debt heading into 2025, with the national credit card debt estimated at $2.7 billion. Many of these borrowers had intended to cut back on their spending due to the ongoing cost-of-living pressures but found themselves overspending across gifts, travel, and entertainment during the holiday period.

Mark recommended debt consolidation as one way to regain control. By rolling multiple debts into a single monthly repayment against a home loan, borrowers could potentially reduce their overall interest burden and simplify their finances. He was clear that the process came with considerations, including potential penalties for paying out existing loans early, as well as application fees, legal fees, valuation fees, and in some cases stamp duty if the new loan was secured against a property. Having a broker to navigate those details was, in his view, essential to ensuring the move actually improved a borrower’s position rather than simply reshuffling it.

He also emphasised one critical discipline for anyone who went down the consolidation path: pay off the credit cards and then close them. Consolidating debt while leaving credit facilities open was a pattern that tended to lead borrowers back to the same position within a year or two. Getting the debt cleared and then removing the temptation was the only way to make the strategy stick.

If you are carrying post-Christmas debt and want to understand your options for consolidating and getting back on track, contact Evolve Lending & Finance for a review.