As the holiday season approaches, many shoppers are facing the risk of accumulating significant credit card debt, with some still grappling with unpaid balances from last year's gift purchases. A recent survey by NerdWallet highlights that 28% of credit card users have not yet cleared their holiday debt from the previous year. With the average consumer expected to spend around $1,778 this holiday season—an 8% increase from last year—credit cards are becoming the preferred payment method for approximately 74% of shoppers. This trend is concerning, especially as the total credit card debt in the U.S. has reached a staggering $1.14 trillion. The average interest rate on credit cards is also alarmingly high, exceeding 20%, making it one of the costliest borrowing options available. As consumers prepare for an expensive holiday season, financial experts warn about the long-term implications of carrying credit card debt into the new year.
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