The holidays are just around the corner and sadly for most Coloradans this also means holiday debt. We have put together some helpful information on how to avoid holiday debt this season and we do wish you all a Merry Christmas and Happy Holidays!
Holiday Debt Statistics
As per information from the Federal Reserve, the U.S. outperformed $1 trillion in credit card debt which is the highest level since the Great Recession. As per Magnify Money’s yearly post-holiday debt survey, Americans piled on more than $1,000 in holiday debt towards the end of a year ago.
MagnifyMoney found, among individuals not exactly 50% of customers, or 42 percent, said they’ll satisfy the debt in a quarter of a year or less. More said it will take five months or more to pay it off. About a quarter or 22 percent said they will just make the base installments.
A recent Credit Karma survey found that a quarter of Americans (27%) think they’ll get the endowment of debt this holiday season. And more than 1 in 10 plans to take out a loan to cover their holiday expenses.
Who Is More Likely to Go into Holiday Debt?
Survey respondents believe the top debt-inducing expense in 2019 will be gifts for their kids and close relatives; their parents or maybe significant other. In fact, 81% of people who go into holiday debt said they’ll likely go into debt to over presents. But not all of them are related to gifts. 20% of respondents state that holiday meals and travel costs to visit relatives are to blame.
Simultaneously, social and familial weights could likewise be driving some to assume holiday-related debt. Just remember, there are lots of free gift giving ideas that can help you avoid holiday debt.
How to Avoid Holiday Debt?
With a little touch of planning prior to the holiday season you van avoid holiday debt. And you can appreciate the enjoyment of giving gifts and investing energy with loved ones without feeling troubled by the debt.
First thing to remember is your spending limit. A financial limit can be a useful method to hold your vacation spending under tight restraints. When you make spending that incorporates satisfying your current debts, you can plan to save a specific sum for holiday costs. Shop two or three months before to avoid debts at the end of the year. If you see something in the mid year that you can manage the cost of and realize you can gift it to somebody at the end of the year, go for it. Opt for sales like on Black Friday. Or buy it during extraordinary deal occasions like Amazon Prime Day, which ordinarily occurs in July each year.
Other great Denver area states to keep costs low include TJ Max, Costco and Target. And remember the best sales tax varies by city so you would be better off making a major purchase in Centennial Colorado or Louisville. Denver has a sales tax rate in 2019 of 8.31%!
If you are struggling with any of the above options it may be time to reach out for help. Credit card debt can lead to bankruptcy. And it is important to seek out professional consultation to prevent you from a number of complications in the end. Barry Arrington is one of the most professional bankruptcy attorneys who has helped out many people in such problems. When it comes to holiday debt issues, you can always seek help from him.