Holiday spending increases pressure on household debt: report

AUSTIN, Texas - The spirit of giving was strong this past holiday season and so was anxiety. 

In a survey by credit reporting giant Experian, 89% of shoppers said they were tempted to overspend during the holiday season. Thirty-three percent also admitted they were stressed about holiday spending.

"Almost everyone tells us inflation's pinching and making it more difficult," said Rod Griffin, who leads Experian’s Consumer Education Program.

Griffin also spoke to FOX 7 about how easy it is for consumers to get into a credit card crunch. The Experian survey, which was done in November, revealed a whopping 94% admit being tempted by eye-catching sales items that were not on their shopping list.

"And we know that people, far too often, have credit card debt that they have carried from one year to the next, one holiday season to the next. They haven't paid it off yet, that is the worst possible scenario," said Griffin.

Some shoppers will enter January with a big credit card bill. Griffin offered this advice.

"First, don't panic. You know, you can always take the time to get there. It will take some time to recover," said Griffin.

To help recover, Griffin promoted Experian’s Marketplace.

The site can help identify expenses and provides tips on credit card consolidation.

"You can also seek help. I mean, professional counseling services. The National Foundation for Credit Counseling, for example, is a great place to start. They can help you with figuring out where you can save money, how you can reduce debts if necessary, working with your creditors," said Griffin.

A lot of gifts purchased in 2024 are expected to come back in 2025. The National Retail Federation predicts nearly $900 billion in goods will be returned.

"Everybody expects there to be an easy way to return something you've bought online," said Laura Goldberg with Auctane, an Austin-based global delivery software company.

Auctane’s subsidiary, ShipStation, also did a consumer survey. 

ShipStation found that 52% of Baby Boomers and 30% of Gen-Zers believe retailers should not charge for return shipping. Goldberg warns that for online purchases, a miscalculation can trip up that process.

"So, one is to look at that return window. The day you gave it as a gift was probably not the day you bought it. Right. And so the return window is from when you bought it to whatever that timeframe is, whether it's 30 days or 60 days. " So do not delay," said Goldberg.

It may cost you to return something, but Goldberg noted, it generally doesn't cost anything to exchange something. 

"So, if you have the wrong size or the wrong color or whatever, an exchange might be an easy way to get that right gift without having to pay extra money," said Goldberg.

The ShipStation survey also found a lot of Gen-Zers were feeling generous this holiday season. Almost 30% expected to spend more than $1,000 on gifts. Older generations, however, said their gift budget ranged from $250 to no more than $500.