US Shoppers Set to Spend $1,778 on Average This Holiday Season – NBC Chicago
Shoppers may spend $1,778 on average this holiday season, up 8% compared to last year.
Americans are set to rack up even more credit card debt as the holidays kick off.
For some shoppers, the upcoming holiday season may lead to significant credit card debt. Meanwhile, some people are still paying off debt from last year’s gift buying.
In fact, 28% of shoppers who used credit cards have not paid off the presents they purchased for family and friends last year, according to a recent holiday spending report by NerdWallet. The site polled more than 1,700 adults in September.
“Between buying gifts and booking peak-season travel, the holidays are an expensive time of year,” said Sara Rathner, NerdWallet’s credit cards expert. “Not only are consumers at risk of getting into credit card debt, but that debt can stick around long after the decorations come down.”
How to Avoid Overspending
“Somehow it’s been programmed into the American consumer, that essentially says ‘I have to spend a lot of money on people I care about,'” said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.
It doesn’t have to be that way, he said.
“There’s no magic wand, we just have to do the hard stuff,” said Candy Valentino, author of “The 9% Edge.” Mostly that means setting a budget and tracking expenses.
Valentino recommends reallocating funds from other areas — by canceling unwanted subscriptions or negotiating down utility costs — to help make room for holiday spending.
“A few hundred dollars here and there really adds up,” she said. “That ‘stash of cash’ is one way to set yourself up so you are not taking on new debt.”
How to Save on What You Spend
Valentino also advises consumers to start their holiday shopping early to take advantage of early deals and discounts or try pooling funds among family or friends to share the cost of holiday gifts.
Then, curb temptation by staying away from the mall and unsubscribing from emails, opting out of text alerts, turning off push notifications in retail apps, and unfollowing brands on social media, she said.
“It will lessen your need and desire to spend,” Valentino said.
Consider an investment, such as individual stocks or bonds or a charitable donation, instead of gifts to create a more lasting impression. Making something from scratch, such as cookies, a candle, or a sugar scrub, may also prove especially meaningful, Valentino said.
What You Need to Know
• 28% of shoppers who used credit cards have not paid off the presents they purchased for family and friends last year.
• Americans are expected to spend between $979.5 billion to $989.5 billion between November 1 and December 31.
• The average consumer plans to spend $1,778 this holiday season, an 8% increase from last year.
Conclusion
In conclusion, it’s essential to be mindful of your spending habits during the holiday season to avoid overspending and accumulating credit card debt. By following the tips provided, you can set a budget, track your expenses, and make informed financial decisions to ensure a happy and debt-free holiday season.
FAQs
Q: How much will Americans spend on average this holiday season?
A: $1,778, an 8% increase from last year.
Q: How much credit card debt will consumers accumulate this holiday season?
A: The exact amount is uncertain, but it’s expected to be higher than last year due to increasing spending habits.
Q: How can I avoid overspending during the holiday season?
A: Set a budget, track your expenses, and consider alternatives to gifts, such as making something from scratch or donating to a charity.
