Holiday sales expected to grow, but rising debt looms
INDIANAPOLIS (WISH) — Analysts at WalletHub are forecasting that U.S. holiday sales will surpass $980 billion in total spending this season. That’s an increase between a 2.5-3.5% from seasonal spending last year.
However, a new report from WalletHub sheds light on the challenges many Americans are facing, with rising credit card debt putting a strain on holiday budgets.
WalletHub’s 2024 “Holiday Budgets by City” report, released Tuesday, reveals that in the third quarter of 2024, the average household credit card debt climbed to $9,706—a 5.1% increase compared to the same time last year. With this in mind, WalletHub has introduced a free tool for members to calculate personalized holiday budgets, available now through Dec. 25.
“Depending on the city, an American’s holiday budget this year can range from just over $200 to more than $4,000. These budgets take into account residents’ income, existing debt obligations, and the local cost of living,” said Chip Lupo, an analyst at WalletHub.
The tool provides a breakdown of recommended holiday spending based on several key factors, such as income, age, and saving-to-expense ratios, for over 550 cities across the U.S. The goal is to help consumers avoid the financial strain that often follows the holiday season.
Wallethub says that Carmel’s average holiday budget is the 9th highest in the country at $3,424.
“Regardless of your financial situation, it’s important to stick to a budget that aligns with your income and expenses to avoid accumulating unsustainable debt. There are many ways to celebrate the season without overspending, such as hosting potlucks or giving handmade gifts,” Lupo said.
WalletHub estimates that the average consumer in Indianapolis will spend $1,395 this holiday season. This is based on a person who has saved $13,806, with expenses that don’t exceed their income of $5,552 a month.
If you want more tips on how to stay budget friendly this season, Consumer Reports has deals you can find this November.