In an already financially difficult year, some Americans may carry over their consolidate credit card debt into the new year. Experts say more and more Americans are using credit cards to give gifts under the tree.
Our group credit card balances have seen better days. And this holiday season sin isn’t going to make it any easier. It’s yet another price to pay that comes with a difficult year spurred by the consolidate credit card debt
Between the Black Friday deals and Cyber Monday sales, the last few days have been great getting everything on your loved ones’ lists for a discounted price.
Addie Diaz says she has benefited from the sales and is helping her church. “Stuff for the kids: Batman, legos, things like that,” Diaz said.
NerdWallet’s 2021 Holiday Shopping report found that 75% of the country will be purchasing their gifts this season with credit cards. “Because I can pay later,” Diaz said.
But buying freebies this year can come with its own nasty price tag.
For some, receiving gifts means getting into debt on a credit card. Sara Rathner is the Credit Cards and Travel Expert for NerdWallet. “We are talking about a very expensive year. And it has a habit of skyrocketing and staying with you until 2022, ”Rathner said.
Rathner estimates that nearly 29% of Americans still paid off their vacation credit card balances from last year. “Americans plan to charge around $ 2,000. A little more between vacation trips and buying gifts. And that’s before you even factor in the cost of buying food to keep people entertained while on vacation, ”she said.
Diaz says he used a credit card on Monday to purchase these freebies. She is grateful that she will be able to pay the full balance when this statement arrives next month. “Because a lot of people still don’t work full time, and if they do, they still can’t make ends meet. So they do what they can, ”Diaz said.
The best way for experts to make sure credit card debt doesn’t snowball is to pay off your balance in full when the statement arrives each month. If you can’t, pay as much as you can, which should at least be the minimum balance.
Your next step should be to develop a plan to deal with this debt.