– Consolidated Credit’s latest survey of 1,135 people finds that 30 percent of respondents say they will use credit cards to pay for holiday gifts and celebrations.
This can be a good thing if consumers stick to their budgets, but with so many people shopping online and using credit cards for purchases, they could overspend and slip into credit card debt,” says April Lewis-Parks, Director of Education and Corporate Communications.
* 40 percent of respondents say that they will spend up to $500 on holiday expenses
* 16 percent plan to spend up to $1,000 on holiday expenses
* 6 and a half percent plan to spend a maximum of $2,000 on holiday expenses
For example, if a person charges a $1,000 on a credit card that has an 18 percent interest rate, and they pay only the monthly minimum amount due, it would take over 7 years to pay it off the debt and they would have repaid the creditor almost double.