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Ahead of Black Friday, some shoppers still have holiday debt from 2020


Americans will spend big on holiday shopping as the season gets underway.

According to the National Retail Federation, holiday spending this year is forecast to break all records.

A separate NerdWallet report found that shoppers spend an average of $762 per year on friends and relatives.

And yet, 29% of shoppers who put holiday gifts on a credit card last year — or more than 35 million people — Still paying off those purchasesThe report said that too.

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Cyber Monday and Black Friday are approaching Some shoppers are forced to pay more for holiday gifts because of higher prices or product shortages.

This drives the card balances to rise after. Americans paid off a record $83 billion in credit card debt in 2020, helped by government stimulus checks and fewer opportunities for discretionary purchases. 

In general, credit card balances increased by $17 billionAccording to data from Federal Reserve Bank of New York, it will be the third quarter of 2021. 

Now, the average credit card balance stands at $27. $5,525.

Credit card debt can be a problem in normal circumstances. hard to pay downThis is especially true when the annual average percentage rate of 16% or more.

Eric Ellman is the Senior Vice President of Public Policy and Legal Affairs for Consumer Data Industry Association. He advises consumers to think carefully about any debt obligations they may take on in this new year.

He said that consumers who get into trouble with their finances can have obvious consequences. The risk of their credit rating falling could cause them to borrow more in the future.

Ellman said, “You should approach every purchase with an open mind and a view to the future.”

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