- Office of Consumer Affairs and Business Regulation
Holiday-induced debt can be a problem for many Americans looking for the newest cell phone, electronic device, or the hottest new kid’s toy. Many companies plan major product releases during this shopping season and are unyielding with their advertising.
According to new data from NerdWallet’s 2017 Consumer Holiday Shopping Report, which analyzed spending and behavior trends of over 2,000 Americans aged 18 and over, Americans plan to spend an average of $660 during the holidays. The survey found that 24 percent of shoppers said they overspent in 2016 and 27 percent say they did not make a budget.
What’s most shocking is that many Americans are still carrying last year’s debt with them into this year’s holiday season, according to a report by CNBC. Baby boomers and millennials spend the most, but debt is a heavy burden to carry for anyone.
Experts suggest that in order to curb your spending and keep from falling into the red this year, follow these tips:
- Make a budget and stick to it. Decide how much you can afford to spend on everything – gifts, decorations, donations, packaging, and more. Once you figure this out, divide it by the number of people you plan to buy gifts for and estimate.
- Monitor sales. Compare prices early to get those discounts.
- Consider alternatives to buying gifts for everyone. Many people participate in gift exchanges, in which each person buys a gift for one other person in the group. Set a top price for each gift so everyone pays the same amount.
- Do not reach into your emergency funds, retirement savings or regular savings to cover holiday costs.
- Pay debt back as soon as you can.
- If you are in debt, know that you have rights. Debt collectors attempting to collect debt from Massachusetts residents must be licensed by the Division of Banks and must follow certain rules. Learn more about the Do’s and Don’ts of Debt Collection.
