A CREDIT-FUNDED Christmas has pushed millions of Aussies into debt, according to new research.

A Finder survey of 1,086 respondents revealed almost half (49 percent) of Australians – equivalent to 9.8 million people – have racked up Christmas debt.

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The research found one in three (36 percent) will take up to five months to pay off their festive debt, while eight percent will take at least six months or more.

A further four percent – equivalent to over 800,000 people – say it will take them twelve months or more to settle.

Millennials went on the biggest spending spree, with two in three (71 percent) accumulating debt, compared to gen X (39 percent).

Amy Bradney-George, credit card expert at Finder, said it’s supposed to be the most wonderful time of the year, but for many Australians, the holiday season can also be a source of financial stress.

“The expectations around buying gifts for loved ones, travelling to see family and other holiday activities can lead to overspending and more reliance on credit.

“With the added financial strain from the rising cost-of-living, many people are finding it harder to stay within their budget and avoid falling into debt.”

Bradney-George said making a budget is key to eliminating holiday season debt.

“A budget helps you take stock of the money that’s coming in and going out.

“Seeing your income, expenses and debts in one place can also help you prioritise your financial goals and avoid overspending.

“Look for ways to trim your spending on things like dining out, entertainment, and unnecessary purchases.

“Consider setting a spending limit for yourself and avoiding unnecessary purchases until you’ve paid off your Christmas debt.”

Men overspent the most with 55 percent carrying some level of Christmas debt, compared to 43 percent of women.