Managing Credit Card Debt During the Holiday Season
As the holiday season reaches its peak, many Americans find themselves reaching for their credit cards to cover last-minute gifts, festive meals, and travel expenses.
A recent study by WalletHub uncovered that almost half of Americans are still grappling with debt from the previous Christmas while simultaneously accumulating new debt for this year’s celebrations.
Chip Lupo from WalletHub expressed concern about this trend, stating, “The fact that people are still paying off debt from last holiday season makes you wonder if they are going to fall into that trap again or are they cutting back because of last year’s debt.”
The study also revealed that 68% of Americans are budgeting for a modest holiday season due to inflation. Holiday budgets this year range from just over $200 to over $4,000, taking into account income, existing debt, and cost of living.
According to Gallup, the average American is projected to spend $1,012 on Christmas this year, a slight increase from last year’s average of $975. However, the average household credit card debt in the third quarter of 2024 stood at around $10,757, adjusted for inflation.
Additional findings from the study include:
- 52% of respondents plan to apply for a new credit card to aid in holiday shopping.
- 72% reported a decrease in charitable giving due to inflation.
- 55% expressed interest in using AI robots for holiday shopping assistance.
For those embarking on holiday travel, Washington’s gas prices are currently 26 cents lower than last year, with an average price of $3.91 per gallon. However, Washington’s gas prices remain significantly higher than the national average by almost 90 cents per gallon.
Article syndicated with permission from The Center Square.
