Here's What the Average American Consumer Spends on Holiday Gifts
Though the holiday season may not officially be upon us just yet, consumers are already flocking to the stores in the hopes of snagging great deals on holiday gifts. But nice as it may be to shower loved ones with presents, all of that shopping comes at a cost.
The average U.S. consumer spends $1,226 on holiday gifts, reports web hosting platform Cloudways. Furthermore, that number doubles in households with incomes of $100,000 or more. But seeing as how most Americans have under $1,000 in savings, it's clear that many are looking at taking on debt in an effort to be generous.
That's problematic, because when you rack up debt, you automatically sign up to pay interest on it. In the case of credit card debt, you're paying interest to your credit card issuer. If you finance a purchase directly through a store, you're paying interest to that store, or its financing underwriter. And while it's worth noting that some retailers offer no-interest financing, that's usually only for a limited period of time, and for larger-ticket items, like furniture. Chances are, you won't be able to pay off a series of $30 or $40 purchases over time at 0% interest.
Source Fool.com
