Consumer finance: Consumers voluntarily take on large debts at Christmas time even though they cannot afford to
Yet, despite being worried about debt, consumers will still spend an average of $1,679 on gifts this year, 75% more than last year, Experian found.
That’s a hefty additional expense considering that last year, Americans racked up more than $1,000 in holiday debt by the end of the season, according to MagnifyMoney’s annual post-holiday debt survey.
Less than half of shoppers, or 42%, said they would pay off that debt in three months or less. More said it would take five months or more to pay it off, MagnifyMoney found.
When you read that American’s are “financially vulnerable“, they often have themselves to blame for voluntarily making decisions to take on debts for the wrong reasons.