News Service from House Harris

Aussies to still spend this Xmas but cautious about debt

SYDNEY, Dec 10 AAP - Australians will still spend significantly on Christmas gifts but will be careful not to go into credit card debt during these tougher economic times, a survey finds.

Research by credit card checking company Veda Advantage shows that 26 per cent of Australians will spend as much as $1000 more on Christmas presents this season than they did last year.

The survey found that a further 32 per cent will spend the same amount on presents as last year.

Some 40 per cent of respondents said they would as much as $1000 less this Christmas than last, citing job security and uncertainty about their finances as major worries.

"Although almost 40 per cent of Australians were spending less this Christmas, the majority of those surveyed intended to spend the same or more as last year despite the economic uncertainty," Veda Advantage chief executive Rory Matthews said in a statement.

Despite the Christmas shopping season, the company found that nine out of 10 Australians said they were unlikely to consider applying for additional credit this festive season or in the next six months.

The usual pre-Christmas spike in credit and loan enquires has not been as significant in 2008, the company said.

Only eight per cent of Australians said they were likely to apply for credit this festive period.

Veda Advantage said it found that individuals who applied for credit cards or loans in October and November were more likely to default in the next three to six months than those who applied at other times of the year.

The research results reveal that Australians were exercising some caution against splurging this Christmas, Mr Matthews said.

"Australians seem to be using existing lines of credit to spend on seasonal festivities and presents this year."

The survey revealed that Australians would repay mortgage and rent before any other loan.

Car repayments, personal loans, phone bills and subscription TV bills were given the least priority when repaying bills.

The online survey was sent to a representative sample of more than 1500 people 18 years and older and was conducted on December 2.