Retailers ready for Christmas splurge

IT’S beginning to look a lot like Christmas, with local retailers getting ready for the expected spending rush in the coming days.
Lorna Jane in Noosa Civic said they were expecting a busy Christmas period with the retailer reporting an increase in trade this week, while major retailers such as Big W are already experiencing lengthy queues with up to a 45-minute wait.
But while it’s easy to get caught up in the Christmas spirit, finance experts are warning families to plan ahead when it comes to spending to steer clear of the New Year bill shock.
CEO of Prushka Fast Debt Recovery Roger Mendelson said he sees a spike in debt defaults every Christmas period, with most consumers being lured into racking up large credit card debts they are unable to pay.
“Consumer spending remains fairly subdued at this stage, however as we draw nearer to 25 December, temptation typically takes over and budgets can fly out the window,” Mr Mendelson said.
“There is a tendency for people to overspend when they see their holiday pay come into their bank account, forgetting that it will need to last into the New Year.”
Mr Mendelson said families are the most at risk of being hit with post-Christmas bill shock, particularly credit card debt.
“It’s vital parents plan ahead and ensure they have budgeted well beyond the silly season, right up until back-to-school time. This period can be extremely draining on a bank account and, without a proper plan for all the necessary expenses, they can find themselves in serious trouble,” he said.
“The most common issues we deal with at Prushka are people with enormous credit card bills who have just lost track of their spending and simply aren’t able to repay them. It’s easy to think you can worry about the bill later, but it catches up with them a lot quicker than they expect.”
Mr Mendelson said there are ways to beat the budget blues such as preparing a Christmas budget, planning how you will spend holiday pay, including a buffer in the budget for unexpected bills and take part in a Secret Santa style Christmas with your family to keep costs down.