You have no hurry Decorations and wrapping with holiday credit card bills are far from a roll of paper. Consumers plan to drop below the average of $ 1,050 on holiday gifts in 2019, up 4% from the previous year, the National Federation estimates.
If you went overboard during the giving season, the card balance in the new year can lower you. But a US news poll shows that consumers have largely avoided holiday loans.
About 62% of consumers said they are happy to spend this holiday season. Most either pay the card balance or plan to pay them soon with some old-fashioned belt-tightening.
As for the next holiday season? Some consumers polled said they intended to save and budget for the holidays.
Among the major US news survey findings:
- Only 16% of cardholders plan to take a holiday loan for two months or longer.
- Some consumers are required to consolidate holiday loans.
- Consumers with holiday loans cite belt-tightening as the top way to pay it.
- Some consumers will save or budget for the next holiday season.
Most consumers did not take loans this holiday season.
Nearly four out of five consumers polled by US News said they took no debt this holiday season and about 14% had less than $ 1,000 in debt. But about 3% racked up $ 2,500 or more.
Most consumers have paid their holiday balance.
About 84% of consumers polled by US News said they would not strike a balance by holiday shopping, and 54% said they do not use credit for holiday expenses. The rest either paid the holiday balance or planned to pay them within a month.
But about 6% said they have a long-term plan expected to pay off their holiday loans and approve the balance for five months or longer.
Consolidating holiday loans is not a plan for most consumers.
About 80% of consumers said they do not have a holiday loan, and of those who do, 17% said they do not expect to consolidate it.
About 3% said they have plans to use a balance transfer card to consolidate debt, and more than 1% plan to use debt consolidation loans.
More than half of consumers did not stick to the holiday budget.
About 43% of consumers did not have a budget for holiday expenses, and 11% exceeded their budget.
Some consumers opened credit accounts for the holidays.
A large portion of consumers, or 93%, said they did not receive loans or other loans during the holiday season.
Among credit takers, the most common types were credit cards, auto loans, payday or title loans and home equity loans.
Belt-tightening is the main plan for consumers paying holiday loans.
Consumers who need to wipe out holiday debt are adopting a simpler approach: About 7% said they are tightening their budgets for everyday expenses. Others are returning gifts, redeeming gift cards or rewards, or asking for a lower annual percentage rate on credit cards, or APRs.
Budget and savings are targets for the next holiday season.
Savings are the top priority for the next holiday season for 11% of consumers surveyed. The budget is significant for 7%, with 6% cut closely by cutting gifts for consumers.
- US News ran a nationwide survey in January 2020 via a Google survey.
- The survey sample came from the general US population, and the survey was configured to be representative of this sample.
- The survey asked 10 questions related to holiday expenses.