Christmas sale
A man plays a violin in front of a shop window decorated with Christmas sales signs Reuters/David W Cerny

Financial comparison site Mozo.com.au has provided tips on how Australians can save more than $1,200 by December 25. It has calculated that debit and credit card holders will spend more, an extra 17 percent in December, compared to other months of the year.

Mozo director Kirsty Lamont said that the festive season can be a financially taxing time, with several Australian households having to scrounge around for extra to spend from Kris Kringle gifts to food this Christmas. The good news, she said, is that there are simple savings and switches that can be done to lessen the pain for Aussie households.

Switch credit cards

Lamont added that making the switch to low rate card with a 0 percent balance transfer offer can be an efficient way to spread the cost of the approaching holiday as credit card balances are expected to skyrocket in December. Paying a cent of interest for up to 20 months can be avoided by moving a person’s balance into a lengthy balance transfer deal.

Following this tip can mean up to $215 savings on a balance of $5,000 over the next 12 weeks alone. “However it’s important to have a financial strategy in place to pay off the card’s balance before the interest free period expires to ensure you’re not paying off this Christmas for many Christmases to come,” Lamont stated.

Cheaper travel

Another way to save cash is through opting for cheaper travel alternatives. From Melbourne Cup to the office Christmas party, Aussies can choose cheaper forms of transport such as trains, buses or even footpaths. These options are cheaper compared to hailing a cab.

“At an evening rate of $2.63/km in Sydney plus a $3.60 flag fall every time you hail, taxis could be costing you around $67 per month for a 5km journey once a week,” Lamont said, adding that anyone will only pay around $14 for the month if he were to travel the same distance by bus.

Check the bank charges

Big banks have ditched ATM fees, and there is a rising number of no fee banking products. Despite these improvements, Mozo calculates that the average Australian household still spends $477 every year on bank charges. According to Lamont, financial products must be reviewed.

If unnecessary fees are paid, she recommends switching to a fee-free alternative. This strategy can reportedlt see a potential saving of about $120 before Christmas.

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