Research estimates Australians accumulated $7.5 billion in credit card debt on holidays
January 6, 2017
News.com.au

MOST holiday-makers have experienced jet lag, but this festive season has seen the emergence of ‘debt lag’, a far longer lasting and more damaging travel bug.

Australians will start 2017 with a holiday hangover to the tune of $7.5 billion in credit card debt, new research from Finder estimates.   

The survey found that 41 per cent of respondents used their credit card on holiday, which translates to 3.97 million Australians on a grander scale; with an average spend of $2,705. Of these, 44 per cent failed to pay their bills off within a month of returning home and around 10 per cent taking longer than a year to pay off their debts.


Holidays can be beautiful, but a year or more of paying off debt? Not so much.

This works out to be around $180 million in interest paid on holiday debts throughout the year.

Finder spokeswoman Bessie Hassan noted that this was not necessarily a problem for the 56 per cent of Australians who paid their holiday debts off soon after returning, but that those who took longer were likely to endure financial hardship.

“Australians have accrued $180 million in credit card interest from trips over the past year, 77 per cent more than the $140 million in 2015,” Ms Hassan said. “One in 38 travellers are worried they’ll never be able to pay off their trip.”

The main sources of debt on trips were shopping (for 35 per cent) and luxury accommodation (24 per cent).
Luxury accommodation was a vice of 24 per cent of travellers.



“Australians are known to enjoy holidays by spending up big, but a carefree holiday can quickly turn into a financial nightmare if they don’t pay it back when returning home,” Ms Hassan said.   

Men racked up an average $500 more than women on holidays, but were more likely to pay the debt off in less than a month, the survey found, while Generation Y were the most likely to take longer than a year to pay off their holidays and Baby Boomers were the most likely to pay off their debt immediately.

“Nothing stops that holiday feeling quite like a debt you can’t repay,” Ms Hassan said, adding that one option for borrowers was to use a 0 per cent balance transfer card to get finances under control.

Yeah
My credit card debt went up over the holidays when I had to use it when the Eftpos went down at the garage I filled at
Now my total debt is $70.00 HELL OH HORROR!!!!!

I've  operated a credit card for years, and in the process have learned my lessons. NOW,  I have a small credit limit 55-days interest free and ALWAYS pay off the entire balance by the due date. Haven't paid credit card interest in years now. That is the only way to operate.