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Rising cost of living puts a stop to Christmas holidays

by Staff Reporter11 minute read
The Adviser

Staff Reporter

Going away for the Christmas holidays is once again off the agenda for many Australians due to the higher cost of living, a new poll by Homeloans has revealed.

According to Homeloans’ Christmas spending survey, the rising cost of living is impacting householders’ travel plans, with more than three quarters of respondents saying they will not be going away for Christmas.

In addition, 69 per cent of survey respondents said they planned to spend less on Christmas presents this year.


“There was a strong response to the question about whether people will be going away for the Christmas holidays, with many simply stating they ‘can’t afford it’,” Homeloans’ national marketing manager Will Keall said.

“Online shopping is also proving more popular, with almost 60 per cent choosing to shop online to reduce costs and also because it’s more convenient – and as an added bonus, you don’t have to cope with the Christmas crowds.”

Some householders are even opting for a DIY Christmas, with 17.1 per cent revealing that they will make their own Christmas presents this year, with hampers, baked foods, cards and gift tags getting frequent mentions.

“While many say home-made gifts are cost-effective, the personal touch is also a key reason,” Mr Keall said.

With rising costs an issue for many, the online poll revealed an increase in people who have a special Christmas savings account – 11 per cent compared with 6 per cent in 2011. The number of people saying they will use credit cards to purchase gifts has remained static, at approximately 56 per cent.

“But budgeting is obviously very important, with around 68 per cent of respondents saying they put a limit on each Christmas present for family members,” Mr Keall said, “and half set budgets for their total Christmas present spend.”

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