More than three quarters of Australians will be spending less on holidays this season with many saving the cash for renovations, new research by Homeloans has revealed.
Seventy-six per cent of Homeloans survey respondents admit they won't be going away for the summer holidays, with many saying they just cannot afford it.
"Staycations certainly seem to be the choice this year, and some of the respondents said they'll be working on their homes or doing renovations, so any spare money is going towards this," Homeloans' national marketing manager Will Keall said.
"The rising cost of living and economic fears are the key reason homeowners are choosing to spend less on Christmas presents this year," Mr Keall said.
Homeloans polled Australians on their Christmas spending habits and the majority said higher petrol, electricity, water, insurances and food costs would stop them from spending as much on presents this festive season.
"Other respondents have cited less disposable income, higher utility costs and now the carbon tax, which has affected their spending habits. A couple of people even stated that they are watching their pennies in case of a Euro meltdown," he said.
The majority of respondents of the nationwide Homeloans' Christmas Spending Survey admitted they use their credit cards to purchase Christmas gifts (62 per cent), with only 6 per cent having a special Christmas saving account.