The holiday season brings joy, but it can also leave a hefty financial hangover. From buying gifts and hosting parties to traveling, the expenses tend to accumulate quickly. According to Finder’s Consumer Sentiment Tracker, many Australians have entered the new year carrying substantial holiday debt, with some struggling to find ways to pay it off. As we navigate the aftermath, understanding how to manage these debts and avoid future financial stress is essential. In this article, we’ll explore practical strategies to help you tackle your holiday spending hangover and regain control of your finances. Holiday Spending Hangover The holiday period is notorious for encouraging overspending. From buying gifts to hosting elaborate dinners and indulging in travel, the expenses can quickly pile up.  Finder’s Consumer Sentiment Tracker for December 2024 tagged 1,010 respondents from all over Australia. From that lot, there were 8 per cent – representing 1.7m people – who reportedly incurred huge debts coming into the holidays and are left perplexed on how to settle them in the new year. The national debt total was estimated at $2.7 billion, which breaks down to an average of $1,634 per head. Finder personal expert Sarah Megginson attributed the huge debt spending to frequent credit card swipes and use of Buy Now, Pay Later (BNPL) services, which also need links to credit cards. The settlement time for the holiday debt also bears much point for consideration. The study found that amongst the 1.7 million beleaguered consumers, 43 per cent of them, or 688,000 people, are estimating they will need as long as five months to wipe out their arrears. Only 23 per cent believe they have the money to settle everything in a month. Some, however, may have a long game to play – 19 per cent calculate between six to 11 months to pay off the debt but 15 per cent believe it will take at least a year. Strategies to Pay Off Holiday Debt Assess Your Debt List all outstanding debts, including credit card balances, personal loans, and buy-now-pay-later accounts. Categorise them by interest rates, minimum payments, and due dates. This will help you understand the scope of your obligations and prioritise which debts to tackle first. Create a Realistic Budget A well-thought-out budget is your best ally in paying off holiday debts, such as reviewing your current income stream and fixed expenses to determine how much you can allocate towards debt repayment. Some discretionary spending such as dining out, subscriptions, and entertainment may have to be sacrificed to free up additional funds. Prioritise High-Interest Debts Focus on clearing debts with the highest interest rates first, using the so-called avalanche method. Alternatively, if smaller debts are causing anxiety, consider the snowball method, which involves paying off the smallest balances first to build momentum and motivation. Consolidate Your Debts A check with your finance advisor may recommend taking up debt consolidation loans to better manage debt, especially the higher-interest ones. Consolidation loans or balance transfer credit cards allow you to combine debts into a single repayment with a lower interest rate, but you will have to fully read the terms and conditions first. Set Up Automatic Payments Automatic payment options can work towards the debt settlement by deducting from your nominated accounts when a due date comes – avoiding the danger of more interest from late payments. If your cash flow allows, consider making fortnightly instead of monthly payments to reduce interest accrual. Cut Back and Redirect Savings Some of your spending habits must be heavily modified to redirect funds towards debt repayment. For example, meal planning can reduce grocery costs, and carpooling can save on fuel.   Side Hustle If your schedule permits, consider taking on a part-time job or freelance work. The extra income can accelerate your debt repayment timeline, reducing financial stress in the long run. Communicate With Creditors If you’re struggling to meet payments, consider talking about your situation with your creditors. Many providers are willing to negotiate repayment plans or temporarily reduce interest rates. Proactively communicating shows goodwill and may help you avoid defaults. However, they still need concrete guarantees and proof you have the money to pay them back.  Avoid New Debt While you work to settle existing debts, it’s also vital to avoid accumulating new ones. Limit or stop credit card usage and postpone large purchases until your finances are under control. One idea to pursue is to possibly deactivate apps linked to the credit card with large balances, and pay the debts associated with them. Small Wins Debt repayment is a marathon but it doesn’t hurt to celebrate small milestones along the way, such as clearing one big debt item that has a hefty interest attached or reducing your overall debt by a certain degree.   Manage Debt with a Balanced Approach Attempting to pay off all your holiday debts in a single month can be unrealistic and stressful, particularly if your budget is already stretched. Spreading repayments over six months to a year allows you to balance debt reduction with other financial obligations, such as rent, utilities, and everyday living expenses. This approach minimises the likelihood of defaulting and helps build better financial habits for the future. Structured Repayment Plan The psychological burden of debt can be immense, leading to stress, anxiety, and even strained relationships. Having a structured repayment plan provides clarity and a sense of control by focusing from the daunting size of the debt to actionable steps you can take to reduce it. Over time, watching your balances decrease can bring a sense of accomplishment and financial empowerment. Avoiding Future Holiday Debt As you work to pay off the recent holiday debts, consider strategies to avoid similar situations in the future. The objective is to look forward to spending the holidays without financial repercussions, even if they are still far below the horizon. Conclusion Some finance specialists advise their clients to “don’t put Christmas on a credit card” – and that maxim may even be truer than you think! Paying off

When flood strikes, the aftermath can be overwhelming, leaving property owners facing both physical and financial challenges. Swift action is crucial to minimize the damage and prevent further complications, from structural issues to mould growth. In addition to the immediate repairs required, understanding the financial options available is essential for managing the costs associated with restoring a property. In this article, we explore the importance of timely flood repairs, the risks of delaying action, and the various financial solutions that can help homeowners navigate the road to recovery. Why Fixing Flood Damage Quickly Matters When a property is hit by a flood, the damage can be extensive and multifaceted. Water can seep into the foundations, weaken structural elements, and create a conducive environment for mould growth. The following are some critical reasons why immediate repairs are crucial: Prevent Structural Damage Water exposure is known to compromise the structural integrity of your property – even more when you consider many houses in Australia are made of wood or concrete. Immediate repairs help prevent the weakening of walls, foundations, and support beams. Mitigate Mould Growth Mould thrives in damp conditions and can begin to grow within 24-48 hours after a flood. This is even worse when there’s five classes of moulds known to grow in Australia, with black water mould the most lethal.   Immediate drying and remediation efforts are essential to prevent mould from spreading and causing health issues. Protect Electrical Systems Water can damage electrical systems, posing a significant safety risk. Prompt repairs ensure that electrical components are checked and restored safely. Reduce Long-Term Costs Addressing flood damage quickly can prevent further deterioration, reducing the overall repair costs. Delaying repairs can lead to more extensive damage, which is more expensive to fix. Finance Options for Managing Flood Repair Costs Given the high costs associated with flood repairs, it’s essential for property owners to be aware of the various finance methods available in Australia to manage these expenses. Here are some options to consider: Flood Insurance One of the primary financial protections against flood damage is flood insurance. This type of insurance covers the cost of repairs and replacements for property and contents damaged by flooding. However, it is crucial to understand the specifics of your policy, as coverage can vary significantly. Government Assistance In the wake of significant flooding events, the Australian government often provides financial assistance to affected property owners. These programmes can help cover the costs of repairs and provide relief during the recovery process. Bank Loans and Lines of Credit For those who need additional funds beyond what insurance or government assistance provides, bank loans and lines of credit can be viable options. These financial products offer flexibility in managing repair costs.  The Australian banking industry, though, may exercise some consideration with repayments for existing loans after a major disaster like a flood. In the wake of the South East Queensland-northern NSW floods in early 2022, for example, the Australian Banking Association announced that member-banks had defer loan repayments for as long as three months, which will apply to home and personal loans, plus certain business loans.   Payment Plans with Contractors Some contractors and repair companies offer payment plans that allow you to spread the cost of repairs over time. This can be a helpful option if you need immediate repairs but want to avoid taking on large loans. Steps to Manage Flood Damage and Finances The emotional and mental stress people experience after a flood may tend to overwhelm the need for rational thinking, especially when repair funds are a big question to answer.    Assess the Damage Before seeking financial assistance, thoroughly assess the extent of the damage. Document everything with photos and detailed descriptions to support your claims or loan applications. Review Insurance Policies Carefully review your insurance policies to understand your coverage limits and exclusions. Contact your insurer immediately to initiate the claims process. Explore All Options Consider all available finance methods, including insurance, government assistance, loans, and payment plans. Choose the option that best suits your financial situation and repair needs. Get Multiple Quotes Obtain quotes from several contractors to ensure you are getting a fair price for the repairs. This can also help in negotiating payment plans or loans. Even in tallying the quotes, you must also check their credentials with your state or territory’s contractor licence registry; NSW Fair Trading, in particular, states that some tradies or possibly unlicenced contractors usually come knocking after a flood offering their services. Do not pay anything without a formal contract. Prioritise Repairs Focus on the most critical repairs first, such as structural issues and mould remediation. This ensures that your property is safe and habitable while you manage other less urgent repairs. Stay Informed Keep up-to-date with any new government assistance programmes or changes to insurance policies that may benefit you. Local councils and community organisations can be valuable sources of information and support. Conclusion Floods can cause significant damage to properties, but immediate repairs are essential to mitigate further harm and reduce overall costs. Understanding the various finance methods available in Australia, including flood insurance, government assistance, bank loans, and payment plans with contractors, can help property owners manage the financial burden of flood repairs. By assessing the damage, reviewing insurance policies, exploring all options, and prioritising critical repairs, you can effectively navigate the challenges of funding your property’s flood repair and restore your home to its pre-flood condition. DISCLAIMER: This article is for informational purposes only and does not supersede existing advice on home repair or finance. 2 Ezi has no business relationships with any government office, home contractor, or emergency management agency.

Australia’s coffee culture is deeply ingrained in the daily routines of millions, with cashless coffee shops becoming an increasingly popular trend. From the bustling streets of Melbourne to the coastal cafes of Sydney, grabbing a coffee is not just about the caffeine hit; it’s a social ritual, a moment of pause, or a way to start the day. As society shifts towards a cashless economy, more coffee shops across Australia are adopting digital payment systems, offering a seamless, efficient, and modern way for customers to pay for their daily brew. One notable example of this trend is Gloria Jean’s Coffee Australia, which recently announced a directive to trial exclusively EFT (electronic funds transfer) payments at select branches. This move is part of a broader shift towards cashless transactions, reflecting changing consumer preferences and the evolving landscape of retail. Why Coffee Shops Benefit from Going Cashless For a coffee store, the decision to switch to purely digital payments can offer several benefits. Increased Efficiency The pressure of transactions in a front-end business like a coffee shop can be time-consuming and prone to errors. Staff need to count change, reconcile cash drawers, and make bank deposits, all of which can take up valuable time. By moving to digital payments, these tasks are eliminated, allowing staff to focus more on customer service and reducing the time spent at the counter. Transactions are faster, which is crucial during peak hours when queues can build up. Enhanced Security Cash handling increases the risk of theft, both from external sources and internally. Cashless transactions significantly reduce this risk, as there’s no physical money to steal. Additionally, digital payments offer a traceable and secure record of transactions, making it easier to manage finances and monitor sales. Cost Savings While there are fees associated with digital payment systems, these can be offset by the savings on costs related to handling cash, such as transportation to the bank and security measures. Moreover, digital payments can reduce the need for frequent cash pickups, which is particularly beneficial for coffee shops with high daily turnover. Customer Preference More customers are moving away from cash, preferring the convenience of tap-and-go payments. The Reserve Bank of Australia (RBA) stated the COVID-19 pandemic exacerbated the decline of cash payments, with more people opting for digital payment methods such as credit/debit cards, mobile payments, and other electronic transfers. By accommodating this preference, coffee shops can enhance the customer experience and avoid potential sales loss from those who no longer carry cash. Health and Hygiene In a post-pandemic world, hygiene has become a top priority for both businesses and customers. Handling cash, which passes through many hands, is seen as less sanitary than digital transactions. Going cashless can reduce the spread of germs, providing a safer environment for both staff and customers. Gloria Jean’s Trials Cashless Payments On 3 September 2024, the Retail Food Group announced that Gloria Jean’s Coffee, one of its component brands, will have a trial programme of exclusive EFT payments at its non-franchise branches, starting 11 September. This decision aligns with broader consumer trends and positions the brand as a forward-thinking leader in the industry. By transitioning to exclusively EFT payments, Gloria Jean’s is responding to the changing dynamics of customer expectations. Customers at these branches can now pay using contactless cards, mobile wallets, or online payment systems. This shift not only speeds up the payment process but also aligns with the brand’s focus on delivering a convenient and modern customer experience. However, the trial does not extend to Gloria Jean’s Coffee franchise owners across Australia. As a result, a franchise owner can still accept cash payments. This decision also supports the broader movement towards a cashless society in Australia. As more businesses, including coffee shops, adopt digital payment systems, cash is gradually becoming less common, especially in urban areas. A Gloria Jean’s representative said the move  was meant to improve the safety and security of employees at the non-franchise branches. For customers, the switch to digital payments in coffee shops like Gloria Jean’s offers several advantages: Conclusion The transition to digital payments is not just a trend; it’s a reflection of the broader changes in how society interacts with money. For coffee shops, adopting digital payment systems is a way to stay relevant and meet the needs of a modern, tech-savvy customer base. As Australia continues to move towards a cashless society, coffee shops that embrace this change can benefit from increased efficiency, enhanced security, and greater customer satisfaction. Even if it’s just a trial period, Gloria Jean’s Coffee Australia’s decision to activate EFT payments at select branches is a testament to the advantages of going digital. For other coffee shops considering this shift, the move to digital payments is more than just a convenience — it’s a strategic decision that can improve operations and customer service, ensuring that they remain competitive in an evolving marketplace. DISCLAIMER: This article is for informational purposes only and is not meant to replace financial advice. The information listed is based on the most accurate data at time of writing. 2 Ezi is not affiliated with any food industry body, coffee chain or digital payments service.