{"id":1800359,"date":"2023-01-09T17:19:21","date_gmt":"2023-01-09T22:19:21","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1800359"},"modified":"2023-01-09T17:20:01","modified_gmt":"2023-01-09T22:20:01","slug":"some-consumers-financed-holiday-spending-with-record-amounts-of-debt","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/some-consumers-financed-holiday-spending-with-record-amounts-of-debt\/","title":{"rendered":"Some Consumers Financed Holiday Spending With Record Amounts Of Debt"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsome-consumers-financed-holiday-spending-with-record-amounts-of-debt%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1800359&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>Record spending during the <a href=\"http:\/\/dailywire.com\/topic\/christmas\" target=\"_blank\" rel=\"noopener\">Holiday<\/a> Season coincided with record-breaking debt levels in American households.<\/p>\n<p>Although Americans took on holiday debt in a smaller proportion than last year, the average debt of Americans who overspent their income rose to $1,549. This represents a 24% increase in debt from the previous year. <a href=\"https:\/\/www.lendingtree.com\/credit-cards\/study\/holiday-debt\/\" target=\"_blank\" rel=\"noopener\">Survey<\/a> LendingTree. LendingTree.<\/p>\n<p>\u201cA year ago, this survey showed the first decrease in average holiday debt since tracking began in 2015,\u201d The online lending marketplace stated. \u201cHowever, following a year of rising prices, seven interest rate hikes from the Federal Reserve to drive credit card interest rates to record levels and overall economic uncertainty, a second-straight decrease wasn\u2019t in the cards. Instead, we got the biggest dollar increase in the eight-year history of this report.\u201d<\/p>\n<p>The most likely to use debt for holiday spending were parents with minor children who earn between $50,000 and $100,000 and millennials aged 26 to 41. While most Americans still borrowed from their friends and family to pay off holiday debt, this has increased the percentage of households that use credit cards.<\/p>\n<p>The news that some shoppers have incurred record amounts of debt came after a shopping season which appears to have exceeded previous years. According to the Census Bureau, 196.7 million Americans purchased online and in-person during the five days that ran from Thanksgiving through Cyber Monday. <a href=\"https:\/\/www.dailywire.com\/news\/thanksgiving-weekend-holiday-shopping-shatters-expectations-despite-economic-headwinds\" target=\"_blank\" rel=\"noopener\">Data<\/a> released by the National Retail Federation, shattering the trade association\u2019s initial projection of 166.3 million shoppers during the first weekend of the season. The previous organization <a href=\"https:\/\/www.dailywire.com\/news\/rise-in-holiday-spending-to-be-outpaced-by-inflation-forecast-says\" target=\"_blank\" rel=\"noopener\">Forecasted<\/a> Holiday spending will increase between 6% to 8% over the previous year, even though inflationary pressures have eroded households&#8217; purchasing power.<\/p>\n<p>\u201cWhile consumers are feeling the pressure of inflation and higher prices, and while there is continued stratification with consumer spending and behavior among households at different income levels, consumers remain resilient and continue to engage in commerce,\u201d Matthew Shay, CEO of the National Retail Federation, stated in an interview <a href=\"https:\/\/nrf.com\/media-center\/press-releases\/nrf-predicts-healthy-holiday-sales-consumers-navigate-economic\" target=\"_blank\" rel=\"noopener\">Press release<\/a>. \u201cIn the face of these challenges, many households will supplement spending with savings and credit to provide a cushion and result in a positive holiday season.\u201d<\/p>\n<p>In the face of rising prices, households have become more dependent on debt. The total level of consumer loans increased from $1.5 trillion at the beginning of President Joe Biden\u2019s tenure to $1.8 trillion as of two months ago, according to <a href=\"https:\/\/fred.stlouisfed.org\/series\/CONSUMER\" target=\"_blank\" rel=\"noopener\">Data<\/a> Federal Reserve. According to the Federal Reserve, the personal savings rate dropped from 20% to below 3% during that same time. <a href=\"https:\/\/fred.stlouisfed.org\/series\/PSAVERT\" target=\"_blank\" rel=\"noopener\">Data<\/a> According to the Bureau of Economic Analysis this is a significant drop in interest rates from before the lockdown-induced recessive recession.<\/p>\n<p>Since public health mandates were lifted around the world, the global economy has had a poor performance. Most analysts predict that this year will be a good one. <a href=\"https:\/\/www.dailywire.com\/news\/big-short-investor-who-foresaw-2008-recession-lays-out-predictions-for-2023\" target=\"_blank\" rel=\"noopener\">Sehen you are in a recession<\/a> In the United States, this would be a reality. <a href=\"https:\/\/www.dailywire.com\/news\/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance\" target=\"_blank\" rel=\"noopener\">worst stock market<\/a> While some may be more optimistic, there were mixed results in recent history. Michael Hartnett, Bank of America Chief Investment Strategist, said in a <a href=\"https:\/\/business.bofa.com\/en-us\/content\/year-ahead-2023\/investment-market-outlook-forecasts.html\" target=\"_blank\" rel=\"noopener\">Report<\/a> A recession will hit in the first half-year before the markets recover. \u201cmuch more solid footing,\u201d While an <a href=\"https:\/\/www.dailywire.com\/news\/economists-predict-whether-2023-will-see-a-recession\" target=\"_blank\" rel=\"noopener\">Outlook<\/a> Jan Hatzius, Goldman Sachs Chief Economic Officer, noted that analysts at the firm believe the economy will continue to grow. \u201cstick a soft landing.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Record spending during the holiday season coincided with many American households making expenditures using record amounts of debt. Though a slightly lower proportion of Americans took on holiday debt at the end of last year, the average amount of debt among those who spent beyond their means rose to $1,549, marking a 24% increase from &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1800362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[14131,8891,6202,5487,14132,7496,4752,3834,6195],"class_list":["post-1800359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire","tag-amounts","tag-consumers","tag-daily","tag-debt","tag-financed","tag-holiday","tag-record","tag-spending","tag-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1800359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1800359"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1800359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1800362"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1800359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1800359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1800359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}