One in five Australians returned from their most recent overseas holiday carrying new debt.
A survey of more than 1,000 Aussie travellers found 13% needed between one and three months to clear their holiday debt, 5% took four to six months and 2% required more than six months.
Among respondents who had travelled overseas recently, the proportion returning with debt rose to roughly 27%.
According to the research commissioned by Insure&Go, unexpected expenses were a significant factor for the debts, with 24% saying additional costs during their trip caused them to spend more than planned.
Men were more likely than women to return with short-term holiday debt, with 17% taking one to three months to repay it compared with 10% of women.
Travellers aged 30 to 49 recorded the highest overall levels of debt, while those aged 18 to 29 were most likely to take four to six months to clear it.
Madhvi Mishra, Insure&Go spokesperson, said major holidays should be approached with the same financial planning as other significant purchases.
“Nobody wants to come home from holiday in debt, but it happens more than people admit,” she added.
“A big trip is often one of the biggest single expenses Australians make in a year, so it deserves the same financial planning as any other major purchase.”
Top Tips For Avoiding Holiday Debt
- Budget for the unexpected: build a contingency fund of at least 10–15% on top of your planned spend.
- Separate ‘want’ from ‘need’ spending before you go and set a daily cap for discretionary costs.
- Pay before you leave home: where possible, pre-pay major costs like accommodation and tours before you travel rather than on credit while away.
