Survey Finds 37% of Americans Overspent This Holiday Season

Survey Finds 37% of Americans Overspent This Holiday Season

In 2018 Americans spent more than $850 billion during the holiday shopping season. That spending level not only rose 5.1% from 2017 but also made it the highest total in six years. Now, according to a new survey by the personal finance site WalletHub, more than one-third of shoppers say they actually overspent this past holiday.

WalletHub’s study found that 37% of respondents felt they overspent during the 2018 holiday season. Luckily 55% of those surveyed say they expect to pay off their holiday debt by the end of this month. However 17% don’t anticipate paying down their debt until at least April of this year. Meanwhile 18% say they’ll be able to pay off their holiday spending by February with another 10% expecting to reach that goal in March. For comparison a previous Wallet Hub survey conducted before the 2018 holiday season found that only 22% respondents expected to still be carrying holiday-related credit card debt in February, with 60% stating that they intended to pay off their balances in full when they came due. Finally, another 18% said they’d likely pay off their credit card debt by January 1st.

Part of the reason so many people end up overspending during the holidays is due to the emotions and sentiments often linked to the season. To that point 30% of respondents say spending more makes the holidays happier. Similarly 20% told WalletHub that the holiday were worth taking on credit card debt for.

Ironically, while shoppers may have spent extra to ensure their loved ones were getting what they wanted, 34% of Americans report that they will likely return a holiday gift they were given. As you might expect clothes were far and away the most likely gifts to be returned followed by electronics and toys. In case you were wondering, gift cards and books were among the least returned items.

Prior to last year’s holiday, the National Retail Federation predicted that the average American would end up spending a total of $1,000 on gifts, decorations, and other festivities. Alas, even with that eye-popping figure, it seems some shoppers managed to even top that. The good news is that the majority of those surveyed said they’re still on track to pay off their debt by the end of the month — which hopefully means they won’t incur any interest. But, for those who may have overspent this holiday season and will continue to carry debt deep into the new year, hopefully 2018 will be the last time they make such a mistake.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...