With December right around the corner Kiwis are starting to get in the Christmas spirit but while the festive season brings a lot of joy, it also brings a lot of expenses. A new survey has found more Kiwis are turning to their credit cards to pay for Christmas this year.
Banked's Christmas Spending Survey 2023 found more than a third (34 percent) of New Zealanders will use a credit card as the main way they will pay for Christmas this year, up 14 percent from last year.
The report, which surveyed 1020 Kiwi adults, found while more Kiwis are putting presents on plastic this year, they also expect to be splashing more cash.
The survey found 33 percent of New Zealanders expect to spend more this Christmas. That figure increases to 41 percent for Gen Z and 40 percent for Millennials, while just seven percent of Baby Boomers say they will spend more this year.
Despite opting to spend more, the survey shows fewer people are now able to rely on the money they’ve saved to pay for Christmas and credit cards are picking up the shortfall.
Last year, 56 percent of Kiwis said money saved would be the main way they would pay for Christmas. That figure drops to 41 percent this year.
"A credit card can be a useful financial tool, but it can also be a trap if not used wisely. Overspending on plastic at Christmas can result in debt that lasts well into the next year, resulting in even more financial pressure," Banked head of publishing Kevin McHugh said.
The report also found while stress related to the cost of Christmas has dropped overall this year from 60 percent in 2022 to 48 percent in 2023, most women and Gen Z Kiwis are still feeling the strain.
Fifty-seven percent of women reported either a little or very stressed about the upcoming cost of Christmas, compared with 38 percent of men. With 55 percent of Gen Z were feeling the same, they are the generation most likely to feel money-related stress this year.
McHugh said the cost-of-living crisis has been putting people under financial pressure for a while now. He said many people are still feeling anxious about the extra expenses involved with the festive period and will be turning to credit cards to cope.
"There is an expectation to splash out over the Christmas period, but good advice is to spend within your means as much as possible and avoid the debt and interest payments that come with credit card overspending," McHugh said.
