Holiday Spending Expected to Surge, Raising Concerns Over Debt

Experts warn against overspending as Americans plan to spend over $1,000 on holiday gifts, with many relying on credit and loans.

Americans are projected to spend an average of $1,014 on holiday gifts in 2024, a notable increase from last year, according to surveys.
A significant portion of shoppers plan to use credit cards, loans, or even emergency funds to cover holiday expenses, raising concerns about long-term financial strain.
Experts highlight psychological and social factors, such as instant gratification and pressure to avoid appearing 'cheap,' that drive overspending during the holidays.
Strategies to curb overspending include setting clear budgets, using cash to limit impulsive purchases, and leveraging rewards programs or gift exchanges to reduce costs.
Research suggests that using cash for purchases can help shoppers stick to budgets by creating a psychological 'pain of paying,' which discourages unnecessary spending.