Aussies reject Christmas on credit

More than half of Australians are likely to make Christmas purchases with cash compared with credit this festive season, according to findings from the latest RAMS consumer report.

The new survey into the attitudes and behaviours of Australians when it comes to Christmas spending revealed the average amount of purchases made by respondents will amount to $1100, marginally down on last year at $1113 in this financially conservative market.

While the majority of Australians believe they will spend about the same amount as last Christmas, one in five respondents said they will spend almost 40% less than last year because they are struggling with their finances (36%) and not confident of next year's economy (25%, double the amount of last year at 12%).

A further 20% of Australian consumers are expected to spend almost ten per cent more than last year (43% up from 34% in 2011).

RAMS Chief Executive, Melos Sulicich said this suggests a two speed Christmas economy at play between those who are comfortable with spending due to their own financial security (20%) and those who are having trouble making ends meet (20%).

Source: RAMS