These 4 tips can help you get out of debt this holiday season

Black Friday sales hit $9 billion for the first time

Consumers spent a record $9.12 billion on online shopping during Black Friday and another record $11.3 billion on Cyber ​​Monday, according to the report. Most recent data from ​Adobe. So far this November, consumers have spent a total of $107.7 billion online, up nearly 10% from last year.

However roughly 60% of Americans are living on their monthly salary.

“Shoppers are continuing to spend despite inflation and economic difficulties,” said Tom McGee, president and chief executive officer of ICSC, the largest trade association for the retail real estate industry.

As high prices continue to weigh on the financial situation of most households, more and more shoppers rely heavily on credit cards and flexible payment plans to make purchases.

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But at an annual percentage rate close to 20%, or even 30% on some retail cardsCredit card debt can take years to pay off.

While buy now, pay later often promises zero interest, learn have also shown that buying on installments can encourage consumers to spend more than they can afford.

Last year, more than half of shoppers made a purchase with BNPL they can’t pay offaccording to a survey from Oxygen, an online only bank.

This year, Americans are on a downward trend debt piled up. However, experts say it’s not too late to avoid similar financial pitfalls this season. This is the way.

How to avoid increasing holiday debt?

Black Friday shoppers wait to enter a Nike store at the Opry Mills Mall in Nashville, Tennessee, on November 25, 2022.

Seth Messenger | AFP | beautiful pictures

1. Cut your credit card

If your credit card balance seems unmanageable, “it’s time to cut back and focus on paying it off,” says Lori Gross, a financial advisor at the Outlook Financial Center in Troy, Ohio. in debt”.

“Use cash from now on if you still have to do some holiday shopping.”

2. Come up with a strategy

Gross adds what you bought from afar and sets a budget for the rest of the season. “It would have been significantly lower if you had spent too much.”

She suggests sharing your strategy with a family member or friend so they can help keep you on track with your new budget and prevent you from falling deeper into debt. There are also free apps and online resources that can help organize your finances for the holiday.


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