Tags: american | shoppers | holiday | debt

American Shoppers Rack Up Average of $1,054 of Holiday Debt  

Image: American Shoppers Rack Up Average of $1,054 of Holiday Debt  
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By    |   Tuesday, 02 January 2018 03:51 PM

Americans reportedly racked up an average of $1,054 of debt this holiday season, according to a recent report.

That tally is about 5 percent more than last year, according to MagnifyMoney's annual post-holiday debt survey.

However, for many shoppers, it could take months to pay down that kind of credit card tab, CNBC explained.

Only half of those surveyed said they plan to pay off their holiday-induced debt in three months or less. Of the remaining half, 29 percent said they will need five months or more, CNBC reported.

Meanwhile, the U.S. holiday shopping season is on track to break sales records on the back of surging consumer confidence and increased use of mobile devices, presenting an unexpected boon for retailers and the delivery companies they rely on, Reuters reported.

The holiday shopping season, a crucial period for retailers that can account for up to 40 percent of annual sales, brought record-breaking online and in-store spending this year of more than $800 billion, according to Mastercard Inc’s analytics arm.

Stakes are particularly high this year for traditional retailers that have invested heavily in technology and free delivery and returns, determined to stay relevant in a market increasingly dominated by Amazon.com Inc.

“It has been an extremely positive holiday season in terms of sales both for brick-and-mortar and for online businesses,” said Shelley Kohan, a Retail Fellow at analytics firm RetailNext.

Preliminary numbers show total holiday sales will exceed RetailNext’s initial forecast of a 3.8 percent increase from last year. “All the economic indicators were very strong, and so I think consumers were more willing to open up their wallets and purses and spend more,” Kohan added.

RetailNext and most other analytics firms and industry groups - including Adobe Analytics and the National Retail Federation - are due to publish holiday sales data later in January.

(Newsmax wire services contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
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Americans reportedly racked up an average of $1,054 of debt this holiday season, according to a recent report.
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2018-51-02
Tuesday, 02 January 2018 03:51 PM
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