Warning as festive spending leaves shoppers with $87bn credit card bill

Australians will rack up an insane amount of credit card debt over the holiday period, which is set to cost them throughout the new year.

Canstar analysis of Reserve Bank of Australia credit card data estimates shoppers spent $86.8bn across November, December and January, should seasonally adjusted spending habits of previous years continue.

If shopping spending mirrors the last five years, consumers will add a further $28.9bn onto their credit cards in January alone.

Australians are now estimated to give the banks $9.4m a day in credit card interest charges, making it even harder to get on top of credit card debt in the new year.

Canstar data insights director Sally Tindall said indebted Australians should reach out to their bank.

“For those facing stubborn debt, make 2026 the year to get back on track,” she said.

“Start by calling your bank and asking to be put on a lower interest rate or move to a card offering a better deal.”

Post-Christmas ‘debt hangover’

Credit card debt has risen every January since 2015, as Australians notoriously struggle to clear their debt within the interest-free period.

It comes as most Australians either miss the fine print or are unable to understand how credit card repayments work.

According to Canstar, shoppers who spent money on Christmas Eve may need to pay back their card as early as this week.

While most credit cards give customers between 44 and 55 days to pay back purchases before charging interest, the actual number of days depends on where a person is in a bill cycle.

This means if you made a purchase on the last day of your billing cycle, you could have as little as 13 days to pay it back, rather than the maximum 44 or 55 days advertised.

Ms Tindall says the post-Christmas ‘debt hangover’ is a decade-long certainty, as shoppers fail to beat the clock on their interest-free days.

“If your credit card is nearing its limit, act before the situation spirals,” she said.

“Look for immediate ways to course-correct — use accumulated reward points for groceries, swap an expensive trip for a staycation, or declutter and sell unused items for extra cash.”