Debt a Concern for Holiday Gift-Givers

Tuesday, December 1, 2015

Gift-givers this holiday season are concerned about accumulating debt—even though nearly half plan to use credit for purchases, according to a recent Experian survey. Shoppers plan to spend an average of $806 on gifts, survey responses indicate.

“The holidays can prove to be a challenging time for many consumers trying to manage their finances,” says Rod Griffin, director of Public Education at Experian. “Credit is a useful tool if it is used wisely, but it’s best to create a budget and determine how much one can afford using credit so there are not overwhelming bills to pay in the New Year.”

Some survey respondents have taken that insight to heart, based on these credit-related New Year’s resolutions:

• Pay off a credit card
• Pay the full credit card balance each month
• Pay credit card debt on time
• Check credit report and credit score more often

In addition, nearly half of shoppers relying on credit to purchase gifts will use a major credit card provider; just 18 percent will use a store credit card. The other half of survey respondents not using credit for gifts will pay cash.

Source: Experian

Published with permission from RISMedia.

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