Quarter of Americans made a big mistake in this holiday season

Do not make a mistake holiday spending, it may take one of you Americans a year old.

Holiday preparations are in full swing, and millions of Americans travel reservations, gift shop, enjoy activities with friends and family. Unfortunately, around a quarter of them could be a big mistake when they do their holiday spending.

What is wrong? Debt vacation.

Woman in knit winter hat stressed out while looking at phone.

Unfortunately, after the gifts have been placed, so this is the one you should try at all costs to avoid this flaw could haunt you well into the new year.

Only 75 percent of Americans do not intend to take on holiday debt

A recent YouGov survey showed that only 75 percent of Americans are not going to get into debt Hawley one day this season. Of the remaining respondents, a troubled 16 percent said they definitely plan to borrow another 9 percent said they did not know whether they will eventually enter the debt.

The survey has more bad news. Among those who plan to use their credit card or accumulated debt of holiday spending, only 29% plan to pay off when they have borrowed in December near the end of. After the rest of the bill will be to pay off in January and, as the Americans say, 5% of debt this year will not be next year’s vacation time has not yet arrived to pay off.

Holiday debt can be a big problem

Borrowing holidays can pay a significant cost, especially if you’re financing your high interest credit cards to buy.

Last year, rising liter average how long it takes to pay off holiday debt in 2018 is expected to spend $ 1,007.24, if the consumer has a 15% interest rate on all such credit card, made only the minimum the amount ooked, you need 57 months to repay and they cost just over $ 400 in interest. And the National Retail Federation expects the average consumption this year will be a high point of $ 1,158.63, for those loan figures will be slightly worse.

Not only can you get annual leave purchasing cards to pay interest, but your monthly payment commitment also means that you must live in less income. This may make itDifficult to save for the future, you will pay the debt on top of the money you need to pay for necessities.

Rita Ÿ how to avoid debt

In order to avoid falling into debt vacation, the best way is to start saving early. Find out what you plan to spend much money, then save enough each month to reach the month when cash is available. Although too late to put this plan into action, this year, you should start now so that you do not encounter such a situation for next year.

Now the festive season is here, if you don “t have much or any save, you need to focus on consumption as low as possible. If you can not completely eliminate the debt by at least the minimum, so you can quickly return to pay consideration to a dollar limit and friends gifts; talking about friends and colleagues about not to exchange gifts this year; and to give homemade gifts or your time gift

If you must borrow holiday shopping, you too. You might want to look at 0% APR credit cards. these cards allow customers to purchase new pay no interest for the promotion period. If you pay off what you owe before the promotional rate expires, you can avoid to make your holiday to buy more expensive.

Do not be in debt the Americans leave

As the United States about 75 percent of people said they would avoid one of the holiday debt, which is obviously not happy may make this season or beyond your budget break through credit card today to sit down and work out a plan to avoid or reduce your loan in the next few years, both for the upcoming holiday season and the future of the holiday.