Around 7 million Australians put their Christmas on credit last year and 5 million are yet to pay their debt off, new data from Finder has revealed.
But while many have been left with a financial hangover from the 2020 holidays, Aussies are taking action in 2021.
Around 2.9 million Aussies have set financial goals for this year according to an ING survey, with over a third of respondents saying their biggest priority for this year was to be financially fitter.
What’s more, a recent Canstar survey found more than a quarter of Aussies invested in the share market for the first time in 2020 as interest rates fell to record lows.
How can I pay off my credit debt?
If you still have remaining credit card debt from the holidays, there are a few things you can do to reduce it.
1. Have a ‘no spend month’
“Making a dramatic reduction in spending for a short period of time can be the kickstart you need to get on top of festive debt,” Finder stated.
“Cutting out extras like streaming subscriptions, takeaway, and frivolous shopping can all help put a bit of cash back in your pocket to pay off your credit card debt faster.”
2. Lower your credit card interest rate
There are currently around 100 credit cards offering 0 per cent interest on a balance transfer.
If you have a good credit score, you could be eligible to transfer your balance to one of these 0 per cent offers which can save you paying interest for as long as 30 months
3. Get a head start
“Start building your Christmas fund now so you won’t be caught off guard when December rolls around,” Finder stated.
“Set up a direct debit into a savings account for an amount you know you will be able to maintain each pay.
“Putting away just $20 a week from now until December will give you an extra $940 to play with come Christmas time.”
How do I make sure my 2021 financial goals are achieved?
The best way to make sure your goals are achieved is to make sure they are realistic, experts say.
A great way to do that is to break down your bigger goals into smaller ones: “Create a detailed timeline and break your plan down into manageable goals you can hit monthly or weekly,” Finder suggested.
To stay on track, you’ll actually need to revisit your goals as you move through the year. That means staying in touch with your budget, or revisiting your savings account each month to make sure you’re hitting your goal.
What else can I do?
If you’re looking to take control of your finances in 2021, join the Broke Millennials Club Six-Week Bootcamp Challenge.
Beginning Monday 8 February, the bootcamp challenge will see you complete six financial tasks (one per week), all with the goal of emerging fitter on the other side - financially fitter, that is.
All you need to do is sign up here. From there, you’ll receive one email per week with one financial challenge inside. We’ll explain exactly what the task is, how to complete it and what you’ll achieve by doing it.
In the meantime, if you’re looking to kickstart your savings for 2021, start our $5,000 in 52-weeks savings challenge.
Or, if you’re after something a little tougher, try our 28-day millennial money challenge.