The holidays may be a costly period of the year. Gifts, travel, and food costs can mount up, and if you’re like most Americans, your January credit card statement may be more than you anticipated.
Do you want to see how your Christmas debt stacks up against others’? Consumers who reported they fell into debt over the holiday season added an average of $1,054 in debt, according to an annual poll done by MagnifyMoney. This is a 5% rise above the amount of debt accumulated over the 2016 holiday season.
Here are some of the survey’s other findings:
44 percent of customers incurred more than $1,000 in holiday debt, with 5% collecting more than $5,000 in holiday debt.
Sixty-four percent of people who have Christmas debt didn’t intend to get into it.
About half of those polled said they anticipated to pay off their debt in three months, while the other half said it would take five months or longer.
Finally, ten percent of those polled said they would merely make minimum payments to get out of debt. Note that if you have a $1,054 credit card bill and make a $25 minimum payment, you won’t be able to pay it off until 2023.
While the reality of Christmas debt can be frightening, there are housing and financial experts who can assist you in paying off your debt faster. Paying off your debt sooner can not only save you money on interest, but it will also help you get back on track with long-term financial goals like home ownership.
The National Foundation for Credit Counseling (NFCC) published research in 2016 that shows how financial counseling delivered by trained NGOs can help people get out of debt faster. The 6,000 individuals who received financial counseling reduced their credit card debt by about $6,000 and their total debt by nearly $9,000 over an 18-month period.
Consumers who did not undergo counseling, on the other hand, reduced their credit card debt by only $3,600 over the course of 18 months, although their total debt climbed marginally.
So, if one of your New Year’s resolutions is to buy a house or achieve other financial goals, we recommend reaching out to a nonprofit housing and financial counselor for assistance in paying off debt and getting your finances back on track. A nonprofit counselor can be found. I can help you to find a nonprofit counselor
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