This holiday season, 36% of American consumers have taken on new debt, averaging $1,181 per person, according to a LendingTree survey. This figure marks an increase from last year but is still lower than the peak seen in 2022. Notably, 44% of those who accrued debt did not anticipate doing so, highlighting the ongoing financial strain many are experiencing. Inflation continues to impact spending, pushing families to borrow to maintain holiday traditions and joy. Parents of young children and millennials are among the most likely to incur new debt, with significant portions of their income going towards holiday expenses. Unfortunately, many Americans are still grappling with debt from previous holidays, with nearly half carrying over balances. As the new year approaches, paying down debt emerges as a key financial resolution. Experts emphasize the importance of tackling debt early to achieve financial freedom and the comfort that comes from being debt-free.
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