Debit on the Rise: What It Means for Holiday Debt
Because of rising inflation and higher prices just about everywhere, experts this fall feared a huge rise in debt around the holidays. Instead, a recent survey shows holiday credit card debt in Memphis might actually not be as bad as we thought.
Debit Card Use Vs. Credit
The National Retail Federation recently surveyed over 7,000 shoppers about their spending habits. Leading into Christmas, 43% of shoppers said they planned to use debit cards to make their holiday purchases. 38% said they’d mostly use credit cards. The rest planned to use cash or checks.
That would be the highest debit card use since 2013. And perhaps more importantly, it would make credit card use the lowest since 2015.
Debit cards, cash, and checks all mean less debt, since they represent money you actually have in the bank. You can’t spend on a debit card unless you have the funds to cover it. And unlike with credit, you don’t have to pay interest on your purchase. That means whatever you spend this month won’t follow you for months down the road.
However, as a bankruptcy attorney, I can’t help but notice the shoppers said they “plan” to use debit cards. A lot of us make plans to spend only what we have. But then we go overboard to give our families the perfect Christmas or take advantage of some big offer. And before you know it, our well-made plans take a turn and become credit card debt we can’t afford to pay back.
Help with Credit Card Debt in Memphis
I hope the survey correctly shows a rise in budget-friendly shopping. With money being so tight these days for most of us, it warms my heart to imagine families spending frugally and giving simpler gifts they know they can afford.
But in reality, it’s really easy to spend on credit and get overwhelmed. Some people simply don’t have the money in the bank to give their loved ones the Christmas they want. And while it’s best in that situation not to spend at all if you can help it, the holiday pressure around you constantly says the opposite.
If you have too much credit card debt and you’re not sure how you’ll pay it all back, you have some options.
First, try not to miss any payments.
Second, create a budget so you don’t overspend any further, if at all possible.
Third, for large debts like big purchases and medical debts, you can sometimes negotiate a payment plan for yourself with the credit card company or institutions. This is a long-shot, to be honest, but it’s always worth a try. They want you to pay, even if it takes a while, so you’d be surprised how open some places are to work with you.
A Trusted Team to Help You Get Out of Credit Card Debt
Lastly, if you’re really in over your head, you might want to consider Chapter 7 bankruptcy. Chapter 7 offers a legal path to get rid of credit card debt, medical debt, and more, so you can have a fresh start. It offers debt forgiveness, so you can rebuild your financial life in a healthier way.
If you’re wondering whether you qualify for Chapter 7 or how it might work for you, we can help. We offer a free consultation, no strings attached. Our award-winning team will answer your questions and give you all the information you need to make an informed decision.
Don’t let credit card debt ruin your holidays or chase you into the new year. Contact us today to get started: 901-327-2100, or just use the form on this page.