Avoiding the debt hangover this Christmas
Written and accurate as at: Nov 14, 2025 Current Stats & Facts
The festive season is a time for fun, family and – for many of us – the occasional financial misstep. With Christmas just around the corner, here are some tips to avoid overspending and keep your budget intact.
Start budgeting early
The sooner you start planning, the easier it will be to stay on track. So before you hit the shops, take a moment to map out all your expected expenses (that obviously includes presents but don’t forget food, decorations and travel too). Once you have a rough figure, check that it fits comfortably within your budget.
To help make things more manageable, consider setting up a separate Christmas fund in the months leading up to December and transferring a small amount each pay cycle. By spreading costs out over time, you’ll avoid the pressure of covering everything in one hit.
Stick with cash
Here’s a strategy for staying disciplined that’s simple, effective, and can be used throughout the year: when shopping in person, withdraw what you’ve budgeted and use that as your spending limit. Once the money’s gone, that’s your cue to stop.
When we shop online or pay via card, it often doesn’t register that we’re parting with something. But cash is tangible, and watching notes leave your wallet makes it much easier to gauge how quickly you’re spending and when it’s time to slow down.
Be wary of Buy Now Pay Later
Buy Now Pay Later (BNPL) services can be convenient, but they can leave your finances in tatters if you’re not careful. That’s because BNPL spreads repayments over time, oftentimes concealing how quickly your purchases are adding up.
If you do choose to use BNPL, try to limit it to things you’ve already budgeted for, and never as a way to buy more than you can afford. Make sure you understand the terms and conditions, and set up reminders or automatic payments so you can pay off the balance without incurring late fees.
Shop early and smart
Leaving your gift shopping to the last minute almost always leads to overspending. You’re more likely to panic buy or pay premium prices for whatever’s left on the shelves. Instead, be on the lookout in advance and take advantage of the major pre-Christmas sales.
Sales like Black Friday and Cyber Monday, which fall in late November, are great opportunities to score some discounts on big-ticket items. Just be sure to research prices ahead of time so you can spot genuine bargains.
Get your family to chip in
Hosting Christmas lunch or dinner is a great opportunity to show off your culinary chops. But all the preparation can be time-consuming, stressful, and immensely draining on your wallet.
To lighten the load, see if you can make it a team effort. Ask guests to bring a dish, contribute to drinks, or help with decorations. Not only can it make Christmas more relaxed and enjoyable for everyone, it reinforces the communal aspect that’s at the heart of the day.
