According to the Australian Securities and Investments Commission, the average Christmas credit card hangover is $1666, which will take the majority of people – 82 per cent – at least six months to pay off.

The ASIC figures suggest that at least three per cent of people will never clear their debt.

Nick Georgiou, a financial counsellor with the Wagga Family Support Service fears many people are finding Christmas a struggle as they try to manage the expectations of family with the reality of their budgets.

“There is evidence that the costs of living are increasing while wages and support payments remain static,” Mr Georgiou said.

“These impacts are most keenly felt in housing costs, energy costs, food and transport – all essential needs that people find it hard to budget around.

“As these are priority expenses, increases here can take away from spending money on things like presents and entertainment and for people and families on tight budgets, expectations to spend more on presents can take some of the cheer out of their Christmas and unfortunately make it a more stressful time.”

Mr Georgiou recommends being up front with family if there is financial stress.

“Try to manage your expectations, and the expectations of family,” he said.

“Don’t feel pressured to do things.”

Centacare Southwest chief executive Paul Jensen said many families were facing financial stress going into the Christmas season, with recent reports from the Australian Council of Social Service, the OECD and Australian Treasury showing economic and social inequality and poverty are growing in Australia.

He suggested that rather than racking up the Christmas debt, people “readjust their expectations”.

“Don’t buy into the whole Christmas mythology of needing to buy kids the latest gadget that they will have forgotten in three months time, or the best Christmas dinner,” Mr Jensen said.

The Reserve Bank estimates that in December last year, Australians slapped $28 billion on their plastic.

Commonwealth Bank’s Consumer Spending Survey has predicted Wagga residents will spend as much as  $38 million on Christmas presents and fun this year.