More Than One-Third of Americans Accumulate Holiday Debt: New Survey
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New York, Dec 28 (NationPress) This holiday season, as many as 36 per cent of Americans found themselves in debt, rising from 34 per cent the previous year, based on the most recent holiday debt survey conducted by LendingTree, the prominent online loan marketplace in the nation.
On average, those who accrued debt added $1,181 to their balances, up from $1,028 during the same time frame in 2023, as reported by Xinhua news agency.
“While the holidays provide a joyous escape, feelings of regret post-spending are widespread,” the survey indicated.
The findings revealed that 60 per cent of individuals who incurred debt experienced stress related to it, and 42 per cent expressed regret over their spending habits, with only 44 per cent admitting they had planned to take on debt.
Among those who took on debt, 65 per cent utilized credit cards for their purchases, 21 per cent opted for buy-now-pay-later (BNPL) loans, and 19 per cent relied on personal loans.
Additionally, the prevailing high-interest rate environment has put consumers at greater risk, with 42 per cent reporting that the highest interest rate they faced was 20 per cent or more.
Many consumers anticipate that paying off their debt will extend well into the new year, with 21 per cent expecting it to take five months or longer, and 20 per cent planning to make only minimum payments, as stated in the survey.
Inflation continues to be a significant issue in the country, greatly affecting individuals' finances, including their holiday expenditures. According to Matt Schulz, LendingTree's chief credit analyst, it is reasonable to expect holiday debt figures to rise over the coming years.
“If you were to purchase the same items you bought last Christmas, you would likely end up spending more this year due to inflation. For many Americans, this means having to either cut back on gifts or incur additional debt,” Schulz explained.
Overall retail sales in the US experienced a 3.8 per cent year-on-year increase during the period from November 1 to December 24, according to preliminary data released by Mastercard on Thursday.
Furthermore, the final five days of the holiday shopping season accounted for 10 per cent of total holiday spending, as reported by Mastercard SpendingPulse.
