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E-mail Xinhua, December 28, 2024
NEW YORK, Dec. 27 (Xinhua) -- As much as 36 percent of Americans took on holiday debt this holiday season, up from 34 percent a year ago, according to the latest holiday debt survey of LendingTree, the nation's online loan marketplace.
Those Americans who racked up balances added 1,181 U.S. dollars of debt on average, up from 1,028 dollars in the same period of 2023.
"While the holidays offer a cheerful reprieve, post-spend regret is still rampant," said the survey.
The survey showed that 60 percent of those who took on debt felt stressed about it and 42 percent regretted spending as much as they did, with only 44 percent of them going into debt as planned.
Among those indebted consumers, 65 percent used credit cards for purchases and 21 percent used buy-now-pay-later (BNPL) loans with 19 percent using personal loans.
Moreover, high-interest rate backdrop was exposing consumers to heavier debt, with 42 percent of them saying the highest interest rate they paid was 20 percent or higher.
Most consumers planned to pay off their debt well into the new year, with 21 percent expecting it to take five months or more to pay off their debt, and 20 percent only making minimum payments, according to the survey.
Inflation is still a big deal in this country, and it's having a huge impact on people's finances, including their holiday spending. It's fair to expect holiday debt figures to increase over the years, according to Matt Schulz, LendingTree's chief credit analyst.
"If you were to only buy the same things you bought last Christmas, you'd likely have to spend more this year thanks to inflation. For many Americans, that means you either have to cut back on gifts or take on more debt," said Schulz.
The U.S. overall retail sales increased 3.8 percent year on year during the period of Nov. 1 to Dec. 24, according to the preliminary data released by Mastercard on Thursday.
The last five days of the holiday season alone accounted for 10 percent of all holiday spending, said Mastercard SpendingPulse. Enditem
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