Spending Is At A Record Level So How Bad Are Iowans Going Into Debt For The Holidays?

As Santa said: on Visa, Mastercard, Discover and American Express.

Holidays tend to be like weddings. We may set a budget for gifts, food, decor you weren't planning on getting, all the stuff.

Spending isn't looking frugal so far this year, according to a report from American Institute of CPAs. 47% of Americans are planning to go into debt thanks to gifts and holiday travel. Nearly 80% of consumers are using credit cards and over 50% do not expect to pay the full bill when it arrives.

WHO13 in Des Moines looked at just how rough holiday spending gets for Iowans. Suzanne Bartholomae, an Iowa State University Associate Professor and Financial Health Extension State Specialist, told them that most people take on about $1,200 in holiday debt based off of last year.

Now, the good news is that she says Iowa typically performs better than the national average when it comes to paying credit card bills on time and maintaining financial responsibility. So overall we shouldn't be in too bad after the season is over.

Bartholomae said the "buy now, pay later" loans that were introduced in 2019 have become a major problem.

The National Retail Federation forecasts that on average, people are expected to spend $890.49 per person on travel, gifts, decorations, and seasonal items in general.

Bartholomae suggests doing things like keeping a wish list to control gift spending, setting caps on gift exchange prices, or choose one financing method (either the "buy now, pay later" company or a credit card).

We all know it's a rough economy. If you have a chance to save anytime in the next week, do it!