How To Avoid The Christmas Comedown

The Christmas Comedown – it’s that lousy feeling you get after all the fun of Christmas and New Years, when you realise you’ve overdone it on all fronts. You’ve eaten too much, of the wrong stuff, you’ve had too many celebratory drinks, and you’ve spent way too much. It’s ok though, we’re here to help, at least with the overspending.

Here’s the Before U Loan guide to not overspending this Christmas.

Know what you’re up against

Last year, Aussies spent on average $783 each on gifts. Add food, booze and travel and it came to $1479 per person. As a country, we spent almost $12 billion, which was up by $1.6 billion on the 2023 number.

Now, the downside of this outburst of fun and generosity is that (according to one study) about 38% of us came into the new year with Christmas-related debt.

Why overspending happens

Christmas carries emotional weight. There’s a desire to make people feel valued by how much you spend on them. There’s also competition between family members; uncertainty around how much is the right amount to spend as well as the pressure of keeping up with “everyone else”.

There are also heavy retail promotions, sales events and bombardment of offers across legacy and social media. Add in the final factor of easy credit in the form of buy now, pay later, credit cards and payday loans and you have a potent recipe for serious over-spending.

Smart steps to avoid overspending

Here are 7 simple tips to help you avoid the over-spending trap:

1. Set a realistic budget now – and stick to it.
   Decide ahead how much you’ll spend total (gifts + food/entertaining + décor/travel). Writing it down increases your chances of sticking to it.
2. Track who you’re buying for, and how much you’re spending.
   Overspend often starts with “just one more person” or “just one more gift”. A list helps keep it under control.
3. Avoid relying on credit cards, BNPL or payday loans for Christmas spending.
   These tools can be useful in limited cases, but come with risks. Credit card balances can attract interest over 20% p.a. BNPL may be interest free initially but late fees and multiple instalments add up; payday loans are very expensive and should be avoided unless there’s no other option.
4. Plan ahead and create a dedicated “Christmas fund”.
   If you begin putting aside a little each fortnight or month, you’ll reduce the need to borrow.
5. Prioritise value and experience over price tag.
   Look for deals, compare prices and shop early. Consider home-made gifts, shared experiences, or even switching to present-free exchanges with friends/family.
6. Plan repayments if you do use credit.
   If you end up using a credit card or BNPL, map out a plan to pay it off quickly. Don’t let Christmas take 6 months to pay off.
7. Stay alert to emotional spending triggers.
   End-of-year emotions (guilt, wanting to be generous, treating yourself after a rough year) can push spending beyond means. Pause before clicking “buy”. Walk away, wait a day, see if you still think the purchase is a good idea tomorrow. Also, just like grocery shopping when you’re hungry is a bad idea, so is present shopping if you’ve had a couple of evening beverages.

Taking a Team Approach

It can also help to get together with family, friends etc and set some boundaries that everyone agrees on. This not only helps keep spending reasonable but also avoids the emotional guilt of “oh wow, you spent more on me than I did on you”.

• Divide costs between household members or friends: Share the cost of family gatherings, catering or decorations rather than one person footing it all.
• Swap gifts or set a gift cap: A modest agreed price-cap or a Secret Santa system can reduce how much you feel you must spend.

Wrapping It Up

December doesn’t have to trigger a financial headache in January. The numbers show it’s easy to slip into debt, but with a bit of planning and a bit of restraint, overspending can be avoided.

Think of it as giving yourself a gift, of a financially stress free start to 2026.