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Industry super fund-owned bank ME has encouraged Australians to make the switch to a low-cost credit card to save on Christmas spending.
The bank expects shoppers and holidaymakers to spend an extra $648 million on credit cards over the festive season.
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According to ME, much of the additional spending will turn into debt come January, with research showing 37 per cent of cardholders revolve their debts on a regular basis.
ME head of deposits and transactional banking Nic Emery said Australians should be thinking about how they can prevent Christmas debt now.
“If you know you’re unlikely to pay off your Christmas expenses immediately, a smart move is to minimise the interest you will incur,” Mr Emery said.
“Switching to a credit card with a low interest rate, even just a few percentage points lower, could potentially save you hundreds of dollars in the New Year.”
The ME research revealed families are those most at risk of debt with schooling and holiday care expenses adding to Christmas period spending.
[Related: Mortgage rate hikes on the cards for 2016]
