A recent survey of 1020 adults in New Zealand reveals that more people are relying on their credit cards to pay for Christmas expenses this year due to financial stress. The study, conducted by Banked, found that 34% of New Zealanders plan to use their credit card as the main method of payment for Christmas 2023, a 14% increase from the previous year.
Despite a decrease in overall stress related to Christmas costs, the survey found that most women and Gen Z Kiwis are still feeling the pressure. Fifty-seven percent of women reported feeling stressed about the cost of Christmas, compared to 38% of men. Additionally, 55% of Gen Z participants reported feeling financial stress, making them the most stressed generation this year.
Kevin McHugh, Banked’s head of publishing, noted that while stress levels have dropped from 60% last year to 48% this year, many people are still anxious about the extra costs of the festive season. He warned that while credit cards can be useful, they can also trap people in debt if not used wisely. He advised spending within one’s means to avoid debt and interest payments associated with credit card overspending.
The survey also found a decrease in the number of people who plan to use their savings to pay for Christmas, from 56% last year to 41% this year. Additionally, 33% of New Zealanders expect to spend more this Christmas, with 41% of Gen Z and 40% of Millennials planning to spend more, compared to only 7% of Baby Boomers.
