The holiday season is in full swing and for many residents in Tennessee, that means the holiday shopping season is in full swing. Unfortunately, the desire to show someone how much they mean has become attached to dollar values and that can lead some people to overspend at this time of year.
According to The Motley Fool, the average consumer in the U.S. started the 2018 calendar year with more than $1,000 in holiday debt. Five percent of people actually amassed about $5,000 in debt during the holidays last year. To make matters worse, half of all people said they would need more than two months to pay off their Christmas shopping debt. The amount of debt seen at the start of 2018 represented a five percent increase over the prior year.
For people who can afford to pay their holiday splurges, such debt may be a matter of inconvenience for a few months. For people who are already in financially challenging situations, however, adding any amount of debt to their load can be the straw that break’s the camel’s back.
Forbes recommends that before spending money this holiday season, consumers make a budget that includes travel, holiday decor, donations and entertaining as well as gifts. If a credit card is to be used, leverage any rewards that it offers as a smart way to reduce the overall load. Taking the time to compare prices or products can also help people to make wise choices when making purchases whether at the grocery store, the mall or online.