Americans Still Grappling with Holiday Debt as Christmas Approaches
In the midst of the holiday shopping frenzy, many Americans are turning to credit cards to cover last-minute gifts, festive meals, and travel expenses as Christmas draws near.
A recent study conducted by WalletHub revealed that almost half of Americans are still grappling with debt from the previous Christmas season, even as they accumulate more debt for this year’s holidays.
“The fact that people are still carrying debt from last holiday season raises concerns about whether they will repeat the same pattern or if they are cutting back due to last year’s debt burden,” said Chip Lupo from WalletHub.
Last year, nearly one-in-four Americans had leftover holiday debt, a number that doubled this year according to Lupo.
The study also indicated that 68% of Americans are planning to budget carefully this year due to inflation, with holiday budgets ranging from just over $200 to over $4,000 depending on income and cost of living.
Another poll by Gallup showed that the average American is expected to spend $1,012 for Christmas this year, up from $975 in the previous year.
On average, credit card debt per household in the third quarter of 2024 was around $10,757 after adjusting for inflation.
Key Findings from the Study:
- 52% of respondents plan to apply for a new credit card to assist with holiday shopping.
- 72% reported reduced charitable giving due to inflation.
- 55% expressed interest in utilizing AI robots for holiday shopping.
For those hitting the road this holiday season, gas prices in Washington are 26 cents lower than last year, with an average price per gallon of $3.91 compared to $4.16 in the previous year.
However, Washington gas prices remain nearly 90 cents higher per gallon than the national average.
Article syndicated with permission from The Center Square.
