Can you believe we are halfway through 2021?
I am hoping you are checking in on your 2021 goals to make sure you are on track to reach them by the end of the year. If you reached any of your goals, CONGRATULATIONS! That is a huge accomplishment. If you are still working towards them, KEEP YOUR EYES ON THE PRIZE!
Now that we are at the halfway mark for the year, I just want to put a something on your radar that I want you to be prepared for...........HOLIDAY SEASON 2021. Yes, I am talking about this now, I know it is summertime!
Why am I talking about this now?
According to MagnifyMoney, "Fewer Americans took on holiday debt to pay for gifts, travel and entertainment in 2020 than they did in 2019, at 31% versus 44%. However, those who did incur debt over the holidays borrowed more money on average." The average debt during the 2020 holiday season was $1,381.
In their research they learned that 89% of those that borrowed money to handle their holiday season spending will not be able to pay the balance within a month. Most of them will only make minimum payments. See below the statistics on the type of debt consumers used:
So what is my ask of you, START SAVING NOW! Pull out the pencil and paper or the handy dandy spreadsheet to create your holiday budget. How much you are going to spend on each person, what you are planning to budget for the shindig at your house, and even the events you think you will attend. Put all this down to determine how much you think you will spend and use that number to start saving for the holidays. Save as much as you can.
Listening to the statistics: if you pay the minimum balance of $35 with the average APR (Annual Percentage Rate) of 15.1% (according to NerdWallet as of February 2021), your $1,381 spending will take 4.5 years to clear your debt. That is just for the average APR. There are consumers with interest rates as high as 24.99%. PayDay/Title loans rates are worse than that.
So let's save our money so we can have a debt free holiday season!