The Christmas holidays are not over yet and the debts of Americans are already registering significant figures, because according to the latest LendingTree survey, 35% of Americans assumed a Christmas debt, slightly less than 36% last year, but the The average amount of those who bought something on credit this year is $1,549 dollars.
According to the analysis, that’s 24% more than last year, when they paid $1,249, and is the highest in the eight-year history of the financial site’s Christmas debt report.
37% of those who get into debt expect to take five months or more to pay it off, compared to 28% a year ago. This percentage increases to 47% among members of Generation X and 42% among women.
Among the results of the survey it is mentioned that 63% of those who took on debt during the holidays did not plan to do so, compared to 54% who did so in 2021. This year, the most likely to say that they did not plan to borrow were women (68 %) and those who earn $35,000 or less a year (67%).
LendingTree notes that it’s no surprise that we’re seeing the largest increase in dollar spending in the history of this report, given soaring inflation, the Federal Reserve raising interest rates, and general economic uncertainty.
“For millions of Americans, it’s not possible to pay off their credit cards in full on a regular basis,” says LendingTree credit analyst Matt Schulz.
“Life is expensive in 2022, and it will be no less so in 2023. That means people have almost zero financial leeway, so any unexpected expense can put them in debt whether they like it or not,” Schulz added.
For those in debt, LendingTree recommends considering a 0% balance transfer credit card or low-interest personal loan; be realistic with the budget so as not to get into more debt; and request a lower Annual Percentage Rate (APR).
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