Holiday Shopping Sees Cash, Not Credit Cards
Credit cards can seem like helpful little elves around the holidays, with as many as 8.6 pieces of magic plastic in your wallet.
The Experian credit agency put out a report in 2007 that revealed 1 in 7 Americans have more than 10 credit cards, with a typical household possessing around 12 cards.
The average total credit card debt on those cards reaches high as $4,088, depending on age and education. According to Fed Reservestudies covered in this Bargaineering.com story, the last Survey of Consumer Finances in 2007 found the medium debt was more around $3,039.70. Times that these numbers by two adults and you get roughly $7,000 of household credit card debt.
American credit card debt overall: $800 billion dollars. Staggering, which is why we’re seeing a trend as high as 71% of all consumers using cash for holiday shopping, as covered in this USA Today story. Visit the National Retail Federation website for more recent studies about consumer shopping issues.
In a Consumer Reports 2008 article titled, “12 Money Mistakes That Can Cost You $1 Million,” a price tag was put on how much a revolving credit card balance can cost the average person in their life: Try between $5,000 and $23,000. And we’re talking about just the fees of using a credit card. Only 29 percent of card owners can pay off the full balance each month. Cash is certainly the king of kings this holiday season.
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