Debt Lingers: How to avoid holiday debt staying with you into 2021

Debt Lingers: How to avoid holiday debt staying with you into 2021

RICHMOND, Va. (WWBT) - Are you still paying off last year’s holiday debt? You are not alone.

According to a survey by our partners at the financial website Nerdwallet-- 33% of Americans are still paying off Christmas 2019.

That’s around 40 million Americans that still have lingering credit card balances from holiday shopping in 2019. Don’t let your 2020 debt linger into 2021. Find a way to pay off those balances. Kim Palmer a personal finance expert with NerdWallet says it’s so common and easy to go into credit card debt this time of year.

“Sometimes if you have the intention of paying it off right away or in the early months of next year, people just don’t get to it. Other expenses come up, especially right now, when people are facing so much financial stress. It can add to that stress to take on credit card debt around the holidays," said Palmer.

So, set limits! Everyone is feeling the pinch this year. Talking with family members now and setting up holiday guidelines for how much you will spend is a great idea.

Also-- Try to buy your gifts out of savings and just cut down on all amount you are spending. That way you’re not loading up your credit cards with an extra thousand dollars to pay off in January.

Copyright 2020 WWBT. All rights reserved.