4 ways to avoid the overspending trap this holiday

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It’s no secret most people overindulge during the holidays.

Aside from feasting on holiday treats, nearly two-thirds of adults said they have felt pressure to overspend this time of year, according to a recent survey by Bankrate.com.

With that comes a heavy toll. Roughly two-thirds of Americans also said that holiday expenses negatively affect their finances and cause stress, according to a separate survey by Experian, which polled more than1,100 shoppers.

“Debt you can’t repay will certainly bring down one’s holiday spirit,” Rod Griffin, Experian’s director of consumer education, said in a statement.

Yet, despite being worried about debt, consumers will still spend an average of $1,679 on gifts this year, 75% more than last year, Experian found.

That’s a hefty additional expense considering that last year, Americans racked up more than $1,000 in holiday debt by the end of the season, according to MagnifyMoney’s annual post-holiday debt survey.

Less than half of shoppers, or 42%, said they would pay off that debt in three months or less. More said it would take five months or more to pay it off, MagnifyMoney found…Read more>>

 

Source:-cnbc