CLEVELAND — The holiday season is almost over, and soon it’ll be time to pay up for all the extra spending.
Americans were expected to spend $1,100 on average on gifts this year, according to NerdWallet. That’s about $200 more than last year.
Personal finance expert Kimberly Palmer told Good Morning Cleveland Anchor Mike Brookbank that inflation and tariffs are reasons for the increase.
“It’s putting a lot of pressure on households to afford all of those extra costs,” Palmer said. “People are turning to credit cards to finance their spending.”
But those charges can add up quickly, especially if you miss a payment.
Palmer offered advice for tackling holiday debt in the new year.
“There’s two main approaches. You can either tackle the highest interest debt first or you can tackle the smallest debt first and build up momentum that way,” Palmer said.
Palmer also suggests using an online debt calculator to see how you can save on interest and pay off your debt faster.
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