Every year, Black Friday pulls millions of Australians into a spending frenzy. While the deals seem too good to pass up, the pressure to shop can come at a steep price. As consumers dig deeper into their pockets, more and more are finding themselves saddled with debt. The question is—how did we get here, and is it worth it?
The Growing Debt Problem
This year, Australians are expected to spend a record $6.8 billion over Black Friday and Cyber Monday. But the rush to get the best deals is putting many shoppers at risk. Data from consumer analytics firm Equifax shows that demand for credit is rising, with credit card applications up 13.3% in the year leading to September. But it’s not just about getting more credit; it’s about how many people are leaving that debt unpaid.
By September, Australians’ personal credit and charge card balances that are accruing interest hit a four-year high of $18.4 billion. That’s a lot of money, especially when you consider how many people are spending just to keep up with sales and the holiday shopping rush.
The Social Pressure to Spend
It’s not just about what’s on sale—there’s a social element at play. Many Australians feel the pressure to buy gifts for family, friends, and even colleagues. Consumer advocate Deb Shroot points out that to ABC “there is a lot of social pressure out there,” especially around Christmas. “Expectations are high, and the temptation is everywhere.”
Black Friday sales have become synonymous with holiday shopping, and as much as the discounts appeal, the feeling of needing to buy more can push people into making purchases they can’t afford. For some, it’s easy to rationalize: “I’ll pay it off later” or “It’s a good deal, I deserve it.”
But those short-term fixes can result in long-term problems. With buy-now-pay-later services becoming more popular, Australians are increasingly signing up for credit without fully understanding the consequences. The National Debt Helpline has seen a 7% increase in calls this year alone about BNPL issues, showing just how easy it is to fall into debt when it feels like there’s no immediate cost.
The Buy Now, Pay Later Trap
If you’re using buy-now-pay-later services, you might feel like you’re avoiding interest. But the fees for late repayments can quickly pile up. What seemed like a simple way to spread out payments often leads to overwhelming debt. In fact, calls to financial counselors and debt hotlines surge every year after the holiday season as people face the reality of their overspending.
Traditional credit card users aren’t immune either. Australians are putting an average of $1,200 each month on their credit cards for discretionary spending, which totals $14,400 a year. While it may seem manageable at first, those numbers can quickly snowball into unpaid balances and higher interest rates, leaving families struggling to pay off debts long after the new year.
Surviving Black Friday Without the Debt Hangover
So, how can Australians avoid the post-Black Friday debt hangover? It starts with setting a budget. Sounds simple, but for many, it’s not that easy. Without a clear idea of how much they can afford to spend, people often go overboard. Financial experts suggest tracking your spending ahead of time and sticking to a set limit. Remember, just because something is on sale doesn’t mean you need it.
It’s also important to review your credit card and BNPL terms before making any purchases. Avoid buying on credit unless absolutely necessary, and make sure to pay off balances in full each month to avoid interest. If you’re feeling overwhelmed, don’t hesitate to reach out for financial counseling before the situation spirals out of control.
