Holiday Credit Card Spending
November 27, 2007
According to the National Retail Federation, it is expected that Americans will spend about $475 billion during the holiday period this year and that much of that will be bought with credit cards.
Even with the current credit worries and housing market mess, this should come as no surprise. The average debt in credit card per US household was at $9,659 at the end of 2006. Credit card use since the 1990’s has increased yearly and that trend may only continue as time passes.
Credit cards are not evil and allow consumers easy access to credit as long as they are used wisely. Those who pay their bills on time are usually given the best perks and interest rates, but there are cards for those who have less than perfect credit histories.
To get the best interest rate on the cards you already have on hand, call the card issuer and ask them what the best rate is you can get. You might be surprised at how often they will lower your rate simply by asking.
Experts agree, however, that whenever possible holiday spending should be done in the form of cash. It is also suggested that those using credit cards for purchases make a budget limit on how much they will charge in holiday items. Once that limit is reached, the cards are put away and not used again.