Retailers Roll Out Deals Ahead of Holiday Shopping Season
Retailers are looking for ways to get you to spend your money, rolling out deals weeks ahead of the official start of the holiday shopping season.
Saving Money is Top of Mind
In a year when budgets are already strapped, saving money is at the top of mind right now.
Deals, Deals, Deals
“It’s all about the deals,” Natalie Richards, a shopper in Pembroke Pines told NBC6. “That’s all I shop.”
Inflation and Credit Card Debt
Ted Rossman, a senior industry analyst for Bankrate, said prices have gone up 20% since the beginning of 2021 and wages have only gone up an average of 17% since then.
“So even though inflation has come down … the prices are still growing,” he said. “They’re just growing more slowly.”
Rossman said higher prices have led many to take on credit card debt in recent years.
“Those balances are at record highs,” he said. “They’re up about 50% since early 2021.”
Avoiding Overspending
To avoid overspending, consider making a budget and sticking to it. If you don’t have a holiday fund saved up, consider gifts you can make – food is always a popular option. And be careful with buy now, pay later offers.
Paying Off Credit Card Debt
“Essentially, you’re buying stuff that you can’t afford,” said Howard Dvorkin, chairman of Debt.com. “The problem is if you default or don’t pay one of those months, all of a sudden … they’re charging you 30% or more interest on this, so that deal you thought was a great idea, it’s not such a great idea.”
New Year’s Resolutions
New Year’s resolutions are right around the corner, so consider prioritizing paying off those high-interest credit cards in 2025. Experts say you may want to start looking into different options now, like zero-interest balance transfer offers or working with a reputable non-profit credit counseling agency, to help you kick start that goal in a few weeks.
Conclusion
In conclusion, with prices still growing and credit card debt at record highs, it’s more important than ever to be mindful of your spending habits this holiday season. By making a budget, avoiding overspending, and prioritizing paying off credit card debt, you can ensure a happy and debt-free holiday season.
FAQs
Q: What are some ways to avoid overspending during the holiday season?
A: Consider making a budget and sticking to it, making gifts you can make, and being careful with buy now, pay later offers.
Q: How can I pay off my high-interest credit card debt?
A: Consider looking into zero-interest balance transfer offers or working with a reputable non-profit credit counseling agency to help you pay off your debt.
Q: What is the average credit card interest rate?
A: The average credit card interest rate is 20.4%.
Q: How much credit card debt is the average person carrying?
A: The average amount of credit card debt is $6,400, according to TransUnion.
