But things many not be so rosy for many families in coming months with the double whammy of Christmas looming on top of recent interest rate rises.

People had been cashed up in recent months as the Rudd Government’s economic stimulus package was rolled out in an attempt to bring about a retail led recovery.

There is little doubt that the handouts helped many businesses stay on track over Christmas in 2008; this year they are on their own.

Now the Reserve Bank looks set on a path of rate rises – yesterday the official interest rate went up to 3.5 per cent and there are indications this will not be the last in the not too distant future.

The current rate is, of course, still considerably lower than it was last year and much lower than the double-digit figures of previous decades.

Nevertheless, the rise will be enough to make many people stop and reassess their discretionary spending this Christmas.

It’s a double-edged sword. If consumers don’t spend many businesses face going to the wall – and when businesses fail, jobs are lost. If people do spend up big, they face losing their homes, and the myriad other problems that are associated with debt, including relationship breakdowns.

Already welfare organisations – who are at the frontline when things go wrong – are warning of increased homelessness and poverty this Christmas.

The message should be think before you spend. Christmas is a time of giving, but family and personal wellbeing, is just too important to wager on.