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Some consumers may be paying off holiday spending well into the New Year. (iStock) Most Americans are experiencing a holiday spending hangover that could take months to recover from, a recent survey said. Seventy-four percent of consumers said inflation had a more significant impact than anticipated on their holiday spending budgets and 45% overspent, according to WalletHub’s recent survey. Additionally, 1 in 4 Americans said they will need 6 to 12 months to pay off holiday debt, and most people will need at least one to three months to pay what they owe.”People generally expect to spend a lot during the holidays, but the stakes were higher this year due to inflation and record high interest rates,” WalletHub said in a statement. “The fact that so many carry holiday debt well into the New Year means the total cost of holiday purchases will continue to grow for the months as interest accrues.” Consumers got some reprieve on holiday expenses, with gas prices decreasing close to an average of $3.00 per gallon for most of the season. The decline in gas prices has helped pull down overall inflation and improved the outlook on the Federal Reserve, possibly lowering interest rates this year. That’s good news for those credit card holders who may take longer to pay off their holiday spending balances. The average credit card interest rate is currently at a high of 22.75% for existing accounts with finance charges, according to WalletHub.If you’re worried about the state of the economy, you could consider paying down high-interest debt with a personal loan at a lower interest rate. Visit Credible to speak with a personal loan expert and get your questions answered.SOCIAL SECURITY: COLA INCREASING BUT MEDICARE COSTS RISING TOO IN 2024Holiday spending pushes some to borrow moreSome consumers are increasingly relying on personal loans or asking lenders for higher credit card limits to cover exp …
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