Australians will spend billions on Christmas this year. Picture: Jason Sammon.

But consumer advocates have warned busting the budget only benefits the big retailers and could lead to a 2017 “debt hangover” that takes more than a couple of Nurofen to shift.

Meanwhile the NSW Government has cautioned consumers to shop with care and avoid hazardous toys that could harm kids.

The annual Cost of Christmas report, from motoring organisation RACQ, said the average person would spend $779 this Christmas, much of that on gifts for other people.

The survey, produced by Deloitte, focused on the shopping habits of people living in Queensland finding people in the state would spend almost $10 billion during the festive season.

Nationally, Australians will spend around $48 billion at retailers this month.

Christmas overspending could lead to a costly New Year debt hangover.Source:Getty Images

The RACQ’s Renee Smith said the expenditure was split across presents, parties and other expenses.

“Queenslanders are a generous bunch and a lot of what we’re spending, more than half in fact, is spent on gifts for others over Christmas,” Ms Smith said.

Most people would dip into savings to pay for Christmas, said the research, but 20 per cent would be swiped straight onto credit cards despite few of us knowing the interest rate we’re saddled with.

“The last thing you want to do is wake up in the New Year with a huge financial hangover,” Tom Godfrey, spokesman for consumer organisation Choice, told news.com.au.

“There’s a temptation to stick it on the credit card but if you can’t afford it before Christmas you won’t be able to afford it in the New Year.”

Mr Godfrey said Christmas overspending could lead people into a “debt trap” they could be spending much of 2017 recovering from.

If Christmas shoppers were insistent on using a card he said they should phone their bank and get a card with a lower rate. Many of us have a rate higher than 20 per cent on our cards when we could get deals lower than 13 per cent.

Be wary of gift cards. Always read the terms and conditions to make sure you're not gifting some a whole lot of hassleSource:News Limited

GIFT CARD TROUBLES

Gift cards were another Christmas blowout it might be best to avoid.

A Treasury report from 2012 estimated Australians spent $2.5 billion annually on gift cards, 40 per cent of which were not wanted by recipients.

Mr Godfrey said a significant number were never even redeemed. “It’s like walking into a retailer and throwing 50 bucks on the ground and walking out.”

He advised gift givers to avoid cards with an activation fee.

Before buying them, shoppers should also study the small print for expiry dates and rules surrounding their use.

“Be really careful of gift cards. While they seem like a very convenient solution basically you’re gifting a lot of terms and conditions. And if the retailer goes under you are left as an unsecured creditor. If in doubt just give cash,” he said citing the Dick Smith gift card debacle when the electronics chain shut up shop.

Choice has also warned consumers to be wary of Christmas hampers. The products in the hampers could be overpriced compared to buying the foodstuffs individually. And some contain distinctly non-festive items such as tinned spaghetti and instant noodles.

NSW Minister for Innovation and Better Regulation, Victor Dominello, steamrollers 47 non-compliant and dangerous toys identified by NSW Fair Trading as part of a pre-Christmas blitz. Picture: AAP/Sarah McPheeSource:AAP

TERRIBLE TOYS

In another plea for shoppers to be careful at Christmas, the NSW Government has used a steamroller to crush hundreds of dangerous toys following a blitz by Fair Trading.

A total of 47 toys among the 10,000 inspected in retail stores across the state were found to be hazardous, with the most common feature being choking hazards and dangerous small parts in products aimed at children three and under.

“Thomas the Tank Engine, Winnie the Pooh and Pikachu toys might look adorable but if they’re non-compliant and unsafe, we must act to protect consumers,” Minister for Innovation and Better Regulation Victor Dominello said in Sydney on Wednesday.

Picking safe gifts was a priority, said Mr Godfrey. But he had some advice to ensure the Christmas budget remained ship shape as well.

“There’s a simple rule that applies to Christmas: write a list and stick to it don’t get caught up in pre-Christmas hype,” he said.

“Today we’ve seen Coles and Woolworths spruiking huge savings but the reality is you have to do right by your family not the major retailers.”

- with AAP