How experts say you can avoid debt this holiday season
It’s the holiday season. A season of giving, buying, and potentially over-spending. Creating debt for consumers.
Dr. Tylor Claggett, a finance professor at Salisbury University, tells 47 ABC, “they need to be very careful about over-extending over the holiday season and it’s very tempting and it’s easy for people to lose sight of the total that they’ve spent from day to day.”
Dr. Claggett tells 47 ABC creating credit card debt is one of the worst things one can do financially. Especially since it takes away from paying for necessities.
However, not over-buying is much easier said than done. Psychologist Dr. Kathy Seifert tells 47 ABC that the overall experience can have a direct impact on our mood.
“When we go shopping, and listen to the music and see the lights and all of that, it releases endorphins and makes us feel good, even if we don’t buy anything.”
According to the Adobe Digital Index, Americans will spend over $83-billion from November to December.
Marking an 11% increase from last year.
The news of more purchases isn’t necessarily a good thing. We’re told that a meeting between officials with the federal reserve is on the horizon that could result in a raise of the “Federal Funds Rate” or federal interest rates for banks and credit unions.
“that ripples through the economy and shows up as even higher interest rates on credit cards and consumer debt.”, said Dr. Claggett.
To make sure the possible changes don’t affect you, we’re told that setting a spending limit and paying cash will help you fall short of your credit card limit, but above all else think before you buy.
“Sometimes we’re not very good at distinguishing what I want and what I need. That takes an extra few minutes to say do I want it or do I need it.”, said Dr. Seifert.
Hopefully you didn’t fall victim to debt during the Black Friday Shopping craze.
Foursquare placed Salisbury at number three on their list of cities where Black Friday Shopping increased the most this year.
