Christmas is a joyful time for Kiwis to celebrate with loved ones, but it can also strain finances due to rising costs.
Over the holiday season, there are plenty of things to spend money on, and unfortunately keeping up with debt repayments may take a back seat.
According to Centrix, over 450,000 New Zealanders are behind on their credit payments.
Keith McLaughlin, Centrix’s Managing Director, says this is 3.5% higher than last year.
“We expect arrears to rise over the summer period, in-line with forthcoming festive spending and wider seasonal trends.”
Christmas really is more expensive
You’re not imagining it – the costs associated with Christmas have risen dramatically over the years.
Many Kiwis feel overwhelmed and financially strained by the pressure to buy gifts, host parties, and attend events.
In New Zealand, households spend an average of $1500 during the holiday season.
Celebrating through food is a classic tradition but has become more expensive for families on a tight budget.
Meal kits are marketed as money-saving options, but they can cost up to 65% of your weekly food budget during the holidays!
The demand for credit rose by 8% before Christmas in 2023, with many using credit cards and buy-now-pay-later options.
With rising unemployment and more people struggling to make ends meet, this trend is likely to continue into 2024.
Partying and gatherings at the end of the year also lead to increased spending, while travel costs soar during school breaks.
In addition, a lot of businesses close over Christmas and New Year, leaving new employees with no income.
Parents also face significant back-to-school expenses following Christmas, especially for children starting new schools.
You can reduce your debt repayments
When you look at how expensive the Christmas season is, it’s no wonder that many households don’t have much leftover to cover their loan or bill payments.
However, it’s important not to let these get away from you. If you miss some payments and fall behind, this can impact your credit score, and this can make it harder for you to get credit in the future.
Instead, you may be able to lower your repayments through a debt consolidation loan with East Bay Finance. This is where we take your existing loans, pay them off, and combine them into one new loan at a lower interest rate.
Some of our clients save hundreds of dollars each week by doing this. It’s really so simple – all you have to do is apply using our quick 2-minute online application form, and we’ll take it from there.
Within 1-2 hours* we’ll come back to you with some options and you can choose the deal that’s best for you.
*Subject to responsible lending checks and criteria
How do we do it?
East Bay Finance is a loan broker, which means we put your loan application in front of multiple low-cost lenders to get you the best deal.
More lenders means more chances of approval!
With rates starting from just 9.95%, you may be able to save significant amounts of money on your loan repayments.
We work with you to structure your loan to make sure your repayments are affordable. We can spread your payments out over a longer period of time – up to 7 years! – to make sure you’ll still have plenty of money left over.
At East Bay Finance, we want our customers to succeed, which is why we make it super easy for them to get on top of their finances.
Get in touch with our friendly team today to find out how we can help you, too!
