Holiday shoppers spend more on credit cards despite high interest rates
Despite sky-high interest rates, Americans are charging record amounts to their credit cards as the holiday shopping season heats up, risking hefty fees and credit score fallout that personal finance experts say can be mitigated with a little planning. Inflation, which was running at 7.7% in October, shows some signs of slowing but still hovers around historic highs. And while 37% of American households say their finances are worse now than last year, 74% plan on spending at least as much this holiday season — about $1,455 per consumer — according to a survey by consulting firm Deloitte. But respondents estimated that same budget would cover only about nine gifts this year, down from 16 last year. Consumers are “going to find ways to combat the challenges they find,” says Rod Sides, global leader at Deloitte Insights. For example, households may cut back on holiday decorations at home to leave more budget for gifts. Some retailers have said consumers are holiday-shopping earlier than u...