As the holiday season approaches, Americans are facing a paradox of record consumer spending while grappling with unprecedented credit card debt. According to the National Retail Federation, spending is projected to hit between $979.5 billion and $989 billion from November 1 to December 31, driven by job and wage gains, modest inflation, and healthy financial conditions. However, many consumers are increasingly relying on credit cards to finance their holiday purchases. A recent LendingTree report revealed that 36% of shoppers have taken on debt this season, accumulating an average of $1,181, a significant rise from $1,028 in 2023. Experts highlight that high prices and persistent inflation are forcing many Americans to resort to credit to manage their holiday expenses. This trend raises concerns about the long-term financial health of consumers as they navigate the festive season while carrying substantial debt burdens.
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