Twenty-Five Percent of Americans In Holiday Debt

Are you in the holiday spirit? If not, we understand you may have a good reason not to be. Approximately 25% of Americans consumers still have holiday debt from last year (2022) according to a WalletHub holiday shopping survey. This fact could have a major impact on spending habits this holiday season into 2024.

The survey revealed that more than 1 in 3 Americans will forego gift exchanges this year due current inflation rates while 1 in 5 will apply for a new credit card to help with holiday shopping. And, holiday shopping isn’t the only thing being impacted by inflation. Nearly half of Americans say their charitable giving will be negatively impacted due to inflation as well. Of those who will continue with the holiday tradition, of gift exchanges and uptick in their spending habits, 28% will spend less than they did last year.

The survey also revealed that 23% of Americans plan on making holiday purchases based on social media trends. What does this mean for business owners? It is an opportunity to optimize your social media platforms and make it easy for consumers to find your products and make a purchase from you.

While this news seems bleak, there could be some alternatives to help you better manage your debts as a consumers and prepare as a business owner during the holidays.

1. Start preparing earlier in the year. Consumers: If you are among the list of Americans in holiday debt, planning sooner can allow for time to pay off existing debts instead of accumulating more. Businesses: Stock your inventory earlier to track sales and adjust before the holiday season is at its peak. Take advantage of holidays such as Thanksgiving, Black Friday, Cyber Monday, and Halloween to offer gift items.
2. Budget. Consumers: Make a list of must haves and the nice to haves during the holiday season. Put a price-point for the max amount you want to spend and commit to it. Businesses: Budgeting for your business will allow you to better manage your financial investments for greater returns when your inventory matches demand.
3. It’s all about the deals. Consumers, make the extra effort to search for and find deals to get the items you want for less. Businesses, adjust to the market. Create promotional events and activities that spark buyer interest to increase your sales despite providing more deals.
4. New year new beginnings. Consumers: The new year often brings new savings when businesses are likely to mark down holiday items. Businesses: With more consumers out looking for deals, you have the opportunity to increase holidays sales earlier in the year to offset the ladder part of the year and peak holiday season.

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