As we enter into the Fall and Winter months, household debt starts to build up as the major holiday season kicks off. “The holiday season is the most debt-heavy season that people fall into,” said financial expert Chris Hogan on FOX Business.” “This debt takes them years to pay off.”
Last year Americans accumulated more than $1,000 in holiday debt. It’s not certain how debts will be this year but 75 million Americans say their finances are a “horror show,” per a WalletHub survey.
Despite this, more than 179 million Americans are expected to participate in Halloween celebrations this year and will spend $9 billion on candy, greeting cards, and other holiday-themed items per the National Retail Federation.
On top of this, 21 million people will go into debt for a Halloween costume, with just 76 percent planned to only spend $50 or less this year. Mr. Hogan stated that Halloween costumes shouldn’t be an excuse to go into debt.
Credit cards are a double-edged sword. They can be helpful but can also drain your finances. That’s why it makes sense to pay off your balance every month. Also, it’s smart to monitor your spending via Apps like Mint.com and Personal Capital.
Since the vast majority of Americans don’t have a budget, they’re more likely to get off track. Having an organized budget, or spending plan will help you identify strengths and weaknesses. This roadmap can help prevent any scary surprises this Halloween season.
“Kids look forward to wearing costumes and having fun during this special time. As parents we develop a costume, take them trick or treating and enjoy the night. You don’t have to spend a fortune to have fun. When you used debt irresponsibly, you will bring true horror into your life.”
Hogan mentioned that saving and personal finance education is paramount into mastering your financial situation. Unfortunately, most Americans can’t correctly answer three basic personal finance questions. These questions aren’t about complex subjects like derivates and credit default swaps, but basic investments and interest rates. Therefore, it makes sense to introduce yourself and your family to personal finance fundamentals. These fundamentals might seem common sense, but they’ll set your family up for long-term success.
Article By: Dalton Brewster