Aussies doing out with the big spend booster to the max, but experts say credit card debt could take years to pay off due to the high interest charges.

Australians are racking up huge credit card debts this holiday season, which could take years to pay off, according to experts. Canstar's most recent research projects that Australians will collectively rack up AU$86 billion in credit card debt spread across November, December, and January, placing huge strain on household budgets.

November is expected to record $29.9 billion in credit card expenditure. Most of this is generated from sales after Thanksgiving, but January spends an estimated $28.6 billion. According to Canstar's Sally Tindall, many will not be able to repay the debt in the interest-free payment period and will incur interest charges, which will be a sizable figure.

RBA data shows that Australians are already earning approximately $8.8 million a day in penalty interest on a combined credit card debt of $17.45 billion. With the holiday splurge adding to this burden; it is more than ever critical to keep an eye on payment cycles and interest-free days to avoid a financial hangover in the year 2025.