The Daily Money: Will credit card debt spoil our holidays? The faces of credit-card debt
Good morning! This is Daniel de Visé with your Daily Money.
The holidays are a perilous time for the nation’s credit card holders. This year, the stakes feel higher than ever.
America faces a crushing credit card burden. The nation’s collective card balance stands at a record $1.08 trillion, as of the end of September. The average interest rate has hit 21%, the highest figure recorded by the Federal Reserve in nearly three decades of tracking.
And now, the holidays are here. The average holiday shopper expects to spend $1,652 this year, Deloitte reports, a bigger splurge than in any of the last three years.
Much of the tab will go on cards. In an October survey of 1,036 consumers by CardRates.com, 38% of respondents said they plan to carry holiday credit card debt into the new year.
Other Americans are determined to cut back. You can read the stories of six Americans battling credit card debt.
How to avoid Christmas credit card debt
As tempting as it might be to shower your loved ones with expensive gifts this holiday season, you should resist doing it – at least with credit cards, Medora Lee reports.
Surveys point to surging credit card debt that could harm people for years. Average credit card interest rates sit at a record high. Delinquency rates also are climbing, especially for those between ages 30 and 39, the NY Fed said. In 2022, credit card companies charged consumers over $105 billion in interest and more than $25 billion in fees, the Consumer Financial Protection Bureau said.
All those trends point to one solution.
“Only spend what you can afford to pay off by your credit card’s due date, if you can manage it,” said John Kiernan, editor at personal finance site WalletHub.
Here’s a list of 12 steps experts recommend to avoid a holiday debt hangover.
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Today is National Cookie Day.
Versions of the cookie have been around for centuries, with the concept first appearing in Persia in the seventh century AD, according to What's Cooking America.
In 2022, the cookie category surpassed $10 billion in annual sales, according to Forbes.
While there is no official national cookie, the classic chocolate chip cookie is king. That's according to many polls conducted over the years, with the most recent coming from Crumbl Cookies by One Poll.
Sixty-two percent of respondents said that chocolate chip was their favorite type of cookie, followed by peanut butter, brownie/double chocolate and oatmeal raisin.
About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.