The survey revealed almost half (49 per cent) of Australians — equivalent to 9.8 million people — have racked up Christmas debt, and 36 per cent of those will take up to five months to pay off their credit card debt, while at least 8 per cent will take six months or more to clear their festive debt.
A further 4 per cent — equivalent to over 800,000 people — say it will take them 12 months or more to settle.
Millennials went on the biggest spending spree, with 71 per cent accumulating debt, compared to Gen X (39 per cent).
Amy Bradney-George, credit card expert at Finder, said that with the added financial strain from the rising cost of living, many people are finding it harder to stay within their budget and avoid falling into debt.
According to Finder, men overspent the most, with 55 per cent carrying some level of Christmas debt, compared to 43 per cent of women.
In a previous survey, Finder found that millions of Australians are also struggling with buy now, pay later (BNPL) and other forms of debt, with around 8 per cent struggling with BNPL debt and one in 10 under pressure from credit card debt.
But while more people are falling into debt, the amount of debt people are carrying has actually shrunk.
Canstar estimated in late December 2022 that the average debt levels dropped to $13,312 in 2022 from $46,020 in 2021, with credit card debt making up more than 40 per cent of all debt.
The comparison site put the subdued credit averages down to long waiting lists for new cars and risky post-pandemic travel, with borrowing for cars and overseas holidays the most common uses for credit in Australia.
