4 December 2007 
 
With Christmas just around the corner, the Institute of Chartered Accountants in Australia (the Institute) is encouraging consumers to spend money wisely over this festive season or risk waking up with a financial hangover in the New Year.  
 
The Institute's Western Australian General Manager, Con Abbott, warns consumers to avoid over extending themselves on credit cards and other borrowing facilities in the holiday rush. 
 
"While the Western Australian economy is booming at the moment, consumers should be mindful that the good times cannot last forever, that WA is influenced by both national and global markets and the key levers in the economy, like interest rates, can increase rapidly," Mr Abbott said. 
 
In the interest of assisting consumers to survive the Christmas period and keep their holiday spending in check, the Institute offers consumers the following '12 financial tips of the festive season':  

• Budget: Set a budget you can afford and then stick to it. Build in a miscellaneous or emergency fund for those unexpected expenses  
  
• Plan: Identify what you will purchase and make a list - check it twice 
  
• Timeframe: Don't leave it to the last minute, rushing creates the risk of spending more than you budgeted and results in impulse buying 
  
• Borrowing: Not just during the silly season - but all year round it is extremely important to think and if necessary talk to a professional adviser before borrowing. Interest rate rises and future rate rises should be considered prior to borrowing 
  
• Repayments: Try to pay off any outstanding debts and make credit card payments before the due date in order to avoid late fees and burgeoning interest costs. When paying off a credit card consider paying above the minimum repayment to avoid extra interest charges  
  
• Credit and Store cards: Stick to one credit card, otherwise debt can multiply with multiple fees and charges. It is also wise to avoid using store cards to purchase large purchases as they generally have higher interest rates 
  
• Be wary of: 'Buy now pay later' or 'interest free' offers. It is important to read the small print and plan repayments to avoid higher interest costs and a financial hang over in 2008 
  
• Post Christmas: Start planning for 2008, check out the Federal Government's 'Understanding Money' website: www.understandingmoney.gov.au/ 
  
• Set up: A separate bank account for Christmas 2008 and have some of your pay credited to it 
  
• Save: Your 2008 tax refund/family tax benefit and use it to pay for next Christmas 
  
• Watch out for: Sales, special offers and discounts, gifts can be bought in the June stock-take sales or even the January sales for Christmas 2008 - it is never too early to start  
  
• Update insurance: With generous presents received over Christmas, especially 'big ticket' items such as; TVs, stereos and white goods, it is important to regularly update your insurance policy to reflect the value of your new assets.