2 weeks Ago
Every year around this time I start seeing the latest statistics about people who are still paying off debt from the holiday gift shopping they did the previous year. Ho, ho, ho? No, no, no. Holiday debt is naughty, not nice.
The percentage of people who in October were still carrying holiday debt from 2023 varies across different surveys — 28 percent according to NerdWallet , 46 percent according to WalletHub — but all the numbers are huge. I find this shocking, but people have their own personal relationships with debt, of course. A recent WalletHub survey declared that "nearly 2 in 5 Americans say Halloween is worth going into debt for.
" Wondering if there's still money on those old gift cards? Here's how to check. Now, I love Halloween, probably more than most, but I hate debt. Same goes for Thanksgiving, Christmas and other holidays.
Ideally, discretionary personal debt is for purchases with long-term value or out of necessity, such as homes, vehicles and higher education. I would be distressed to learn that a loved one went into debt to buy me a holiday gift. Of course, holiday debt isn't just about gifts.
It can also come from expenses associated with travel, meals and decorations. Happy 50th to the federal law that allowed women to get credit without a man's permission The National Retail Federation projects that Americans will spend an average of $902 per person on "the winter holidays" this year, with $641 of that amount going toward gifts. And that's one of the low estimates.
Gallup, the polling company, puts the number at $1,014 for "Christmas or other holiday gifts." Deloitte, the big consulting firm, expects an average spend of $1,778, and Bank of America Securities puts the number at $2,100, according to several published reports. Those are some high spending expectations.
Now that the calendar is showing November, it's getting late in the game for any advance planning, but there still time to consider some of these tips: For hotel stays, points beat free night certificates from Marriott and others. Here's why. Those who are already struggling with high-interest credit card bills should focus on a plan to get out of the hole.
That could include making a strong effort to avoid taking on more debt, trimming expenses, and seeking extra paid work. Temporary holiday-season jobs are an option to consider. People with relatively good credit could also consider taking advantage of balance-transfer deals from credit card issuers, offering zero interest for some period of time on transferred balances.
But only do that if it's part of a plan to pay that balance off. Why pay a 20% credit card rate if you could pay zero interest? Getting in better financial shape is a gift that keeps on giving. With apologies to Frank Sinatra: Have yourself a debt-free little Christmas, let your spending be light, next year all your troubles will be out of sight.
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