Warning issued on Christmas credit card use

Credit cards used to finance Christmas expenditure should be cleared off immediately, one politician points out.

Australians planning on funding this Christmas with their credit cards are advised to pay off their debts as soon as possible.

Lisa Singh, Tasmania's minister for corrections and consumer protection, points out that while it can be "tempting" to use Aussie credit options to finance the purchasing of gifts and other seasonal fare, consumers should attempt to clear off their balance in full as quickly as they can.

"If you have to use a credit card, spend wisely and aim to start a debt free new year," she states.

And while Ms Singh points out that interest free period schemes can sound appealing the overall expense of such plans should first be considered, as missing or being late with a repayment can incur quite high costs.

Those looking for tips for saving were urged to plan ahead for the cost of Christmas and to stick to a budget.

Such advice comes as Cheapskates.com.au owner Cath Armstrong told the Sunday Times that families should not feel the need to splash out hundreds of dollars on food and decorations this Christmas because they think tradition dictates that they should.

By Bret Clement