Dangerous trend ... Australians continue to rack up debt on credit cards and personal loans at Christmas.

Predictions show the nation is expected to reach credit card debt levels of a whopping $51 billion and about $150.7 billion worth of personal loans.

Reserve Bank of Australia data shows personal debt has continued to rise at Christmas for the past three years, leaving Australians with a debt hangover in January — and this Christmas is expected to be no different.

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Festive splurging has remained on an upwards trend — figures show in January this year our credit card debt hit a whopping $50 billion, up from $49.3 billion in January 2014 and $48.7 billion in January 2013.

Personal loan debts are almost triple that — in January consumers owed a massive $149.5 billion, up from $136.8 billion in January 2014 and $129.6 billion in January 2013.

Stern warning ... Shoppers need to think carefully before racking up hefty credit card and personal loan debts as it can leave a big hole in their pocket after Christmas.Source:ThinkStock

St George senior economist Hans Kunnen calculated the debt predictions based on current economic trends and said while he expected personal debt levels to rise it was “a worry” that people could be overstretching themselves financially.

“It’s a big number but credit card debt is rising in line with key components of the economy,’’ he said.

“There are also some people who live on their cards to get by and that is not a good state of affairs.

“We all tightened out belts after the global financial crisis ... but we are not there at this stage and I would expect a modest increase (to debt levels.)

“There are people who are in trouble because their incomes are low and their debts are racking up.”

Roy Morgan research shows Australians are expected to spend $3 billion at department stores in the lead-up to Christmas, $3.6 billion on apparel, $6.6 billion on hospitality, $8.1 billion on household goods and $18.9 billion on food.

Risky spending behaviour ... Yellow Brick Road’s executive chairman Mark Bouris said Australians had already racked up far too much debt.Source:Supplied

The Customer Owned Banking Association’s data also found 41 per cent of shoppers will use a credit card for at least half of their Christmas shopping this festive season.

Interest rates on credit cards remain hefty — many over 20 per cent — while personal loan debts are usually around the 10 per cent mark.

Yellow Brick Road’s executive chairman Mark Bouris said the nation’s continuing accumulation of debt remained a serious problem.

“While the rest of the world is paying off debt, we’ve been accumulating more,’’ he said.

“In Australia, personal debts like car loans and credit cards are rising while salaries plateau.”

The Australian Retailers Association’s executive director Russell Zimmerman said Christmas sales so far this year had been relatively strong.

“Generally it’s been fairly good trading,’’ he said.

sophie.elsworth@news.com.au