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The High Cost of Holiday Cheer
This year’s gifts bring short-term joy, long-term stress as consumers rack up billions in debt
A recently released survey shows that roughly half of Americans are taking on new short-term debt this holiday season in order to finance gift giving.
The survey, by DebtHammer, reported:
About 50% of shoppers are planning to take on new short-term debt this year during the Christmas season to cover their extra costs and getting through the season is taking a toll on emotional health.
Spending is again expected to hit new highs, meaning shoppers will be taking on billions in short-term debt.
The National Retail Federation is forecasting that holiday retail sales during November and December will grow between 6% and 8% over last year, to between $942.6 billion and $960.4 billion. And that’s after last year’s $889.3 billion shattered previous records.
How will Americans pay for all this debt?
Most consumers say they plan to use a credit card to finance holiday spending and will carry the balance into 2023.
DebtHammer’s survey also notes that Buy Now, Pay Later is a popular option:
13% plan to use “Buy Now Pay Later” plans, which require…
