December 24, 2025
KUALA LUMOUR – ‘Tis the season for Malaysians to tap their credit cards, with expenses shooting to its highest in December.
Be it for shopping, the year-end holidays or paying the bills, this month has consistently recorded the highest amount of credit card expenditure.
It is during this time of year when people in the country spend about 19.3% more than the average amount they would spend in other months.
This is based on data from Bank Negara, which showed that the total value of credit card transactions hit its highest each December between 2019 and last year; with the exception of 2020.
Calling such trends as consistent, experts urge the public to be more mindful during this time to avoid going into debt in the new year.
Malaysians spent an average of RM16.62bil in December over the past six years using their credit cards – more than the average RM13.93bil in other months.
From 2019 to 2024, people spent a cumulative total of RM99.73bil in December.
Here’s how December stacks up against other months:
The amount of loans disbursed for credit card usage is generally on the rise in Malaysia.
But the peaks have consistently been in December, as seen in the chart below:
With December having the biggest credit card bills, it also recorded the highest number of transactions.
In this month, Malaysians use their credit cards about 16% more frequently than other months.
An average of 55.89 million credit card transactions were logged every month between 2019 and 2024.
But in December, this number went up to an average of 64.98 million transactions.
Such transactions include cash advances and overseas transactions.
Why December?
Year-end bonuses, school holidays and the festive season in December are main factors driving the peaks in expenses, say experts.
Malaysia Literacy in Financial Education Association chairman Amy Seok said such a trend was similar in many other countries too.
“From my experience, people tend to loosen their wallets towards the end of the year, especially when there are bonuses, holidays, and festive celebrations.
“When people feel they have “extra money” coming in, they are more willing to spend.
“Sometimes, they end up using credit cards more than they realise,” she said.
Licensed financial planner Gunaseelan Kannan said people also spend more during this time as they make travel plans.
“Parents also make purchases related to school needs in preparation for the new academic year.
“At the same time, major year-end sales are heavily promoted and often perceived as value buys.
“This encourages consumers to spend more, sometimes beyond what they originally planned,” he said.
Seok said the festive season, filled with gifts, food and celebrations, add on to the extra spending.
She added that bonuses also give people confidence to spend first and worry about paying later.
“Individually, each expense may seem small, but together they can push credit card balances higher,” she said.
Don’t land yourself in bigger debt
To avoid overspending and beginning the new year in debt, Seok urged people to set a clear budget for December and not treat bonuses as “free money.”
“Use part of your bonus to save or pay off existing debt.
“Avoid paying only the minimum on credit cards, as this can drag the debt into the new year.
“Think twice before big purchases and ask yourself if it’s really necessary now – small awareness checks can prevent big regrets later,” she advised.
While this month should be enjoyed, Seok said celebrations do not need to mean overspending or relying heavily on credit.
“Credit cards are useful tools, but only if you already have a plan to pay them off.
“A good mindset to have is: If I can’t comfortably pay this off in the next one or two months, maybe I should wait.
“Starting the new year with fewer debts gives you much more peace of mind and financial flexibility,” she said.
Gunaseelan said bonuses should also be partially set aside for savings, emergency funds, or debt repayment.
“Credit cards should be used thoughtfully rather than impulsively, with close attention paid to repayment timelines and interest charges.
“Where possible, non-essential purchases can be delayed and reviewed again in January, as many spending urges tend to fade once the festive season has passed,” he added.