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Here’s why $302 billion of mortgages are at risk

Image: Getty

He’s meant to spread joy and cheer, but this year, Father Christmas is set to spread something else: mortgage stress.

One in four Australian borrowers will have a hard time meeting their mortgage repayments over Christmas, reveals new data from finder.com.au.

With an average home loan size of $395,800, that’s $302 billion of mortgages at risk.

South Australian borrowers are the most likely to face challenges, with 29 per cent of households admitting they struggle to meet repayments over Christmas. Only 21 per cent of households in NSW feel the same way.

Interestingly, those aged 59 and older are more likely to experience difficulty, with 25 per cent admitting struggles. That’s compared to 22 per cent of those between 39 and 58.

We’re also at risk of blowing our credit rating

In a new spin on the “silly season”, one in ten Australians are concerned their Christmas spending could actually impact their credit score.

“Your capacity to repay any debts be that credit cards, personal loans or AfterPay purchases is what you need to think about before you go shopping – not after,” finder money expert, Bessie Hassan, told Yahoo Finance.

“Nobody wants to be left with a financial hangover that could cause them problems down the track.”

More than a quarter (27 per cent) of Australians will rely on their credit cards to get them through the festive period, with women more concerned (9 per cent) their spending will be harmful to their rating than men (7 per cent).

Hassan said shoppers should set a budget, shop around and look at ways to cut back.

It’s also a good idea to reduce your credit card limit before you get tempted, she added.

Victorian spenders are the most worried about their money habits

Victorian shoppers are the most concerned their Christmas spending will land them in hot water, while NSW residents are the least concerned.

Here’s the data:

Image: Finder

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