Overspending During the Holiday Season

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Overspending During the Holiday Season

Overspending During the Holiday Season


Updated: May 28, 2019

The content is accurate at the time of publication and is subject to change.

It`s the holiday season again. In a couple months we can look forward to the leaves changing colors, the smell of Thanksgiving turkey, and the first snowstorm. With that comes buying enough groceries to feed a feast of 10 people, buying Christmas presents for your whole family, and other expensive, yet important things.

Sad but true, one thing that is unique about the holiday season is how much consumers spend. More so than any other time, during the holiday season consumers are more likely to purchase in lump sums and cough up receipts that six times as much as what they would have spent during other parts of the year. For Example, the average consumer spends about $100 a month on clothing during the year (excluding holidays), during the holidays consumer purchases average $600.

From October to January, or from Halloween to New Years, consumers can overspend and rack up to about $1,000 worth of debt. That`s an average of $3,000 in debt in a quarter of a year. Most consumers pay off these debts in the same manner that they pay off the other debts, but this can be an inefficient payment plan.

Try planning ahead for the holiday season by saving throughout the year. If that`s not possible, try shopping with a few things in mind.

  1. It`s Not Always About Name Brands. We flock to name brand products because they are the most familiar to us. Honestly, a name brand doesn`t guarantee the best quality. Do your research and see if a no-name competitor can give a better option at a cheaper price. This can help you out at the grocery store when shopping for Halloween pumpkins or for that Thanksgiving turkey. It could also apply to any electronics you purchase.
  2. Need vs. Want. Make sure you know the difference. It can be hard to differentiate during the holiday season. Writing down a list will help you stay focused next time you head to the store. Try and stick to the list, but don`t beat yourself up if you need to pick up one or two extra items.
  3. Keep Your Receipt.If you have issues with any of your purchases make sure to have your receipt handy. Also, understand the stores return policy when making a purchase. Some items may be on 'final sale,' others may have a seven day return policy, and others might only offer gift cards when you return your item.

The best option is to save money ahead of time to prepare for the holiday rush, but if you can`t and a credit card is your only option, use it wisely.

And try not to overspend this holiday season.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related Research:

Top 5 Secured Credit Cards: October 2020 – Experts’ Choice

Top 5 Secured Credit Cards: October 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: October 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: October 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: October 2020 – Experts’ Choice

Top 5 Store Credit Cards: October 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!