With just one more day until millions of children open their Christmas gifts and millions of parents wondering why they spent so much darn money this year, we thought we would take a peek as to how much Americans are spending on the big day.
A Gallup poll released last month found that American consumers are spending like it’s 2007! That’s right, consumers are expected to spend $830 this year, which is up from last year’s $720 and close to 2007’s $866.
Here is the chart:
Considering that the average consumer debt per household is about $30,000, is Christmas something Americans can really afford anymore? Perhaps it’s a realization that everyone takes out of their mind until mid-January, a time when all of the bills come in.
It should be noted that these are expectations. As a lot of studies suggest, consumers usually go over budget. So this $830 will likely turn into $1,000 at the end of the festive season.
I will be spending a big fat ZERO, on Xmas this year.
Since 2007 I have spent an average $105 per month over budget, racking up over $10,000 in credit card debt.
What recovery???
Very easy to do using 10 to 20 percent of monthly income to service my credit card debt.
Now I will be using 40 percent of my monthly income to pay off the debt in 18 months.
I will make it on the 60% left by cutting out a few things.
Cable TV, save $60 per month.
Us city bus, save $100 per month on car insurance and gas.
Save $1,000 for now, because I cannot afford to fix the brakes on my 1966 Mercedes.
Set thermostat to 65 saving $40 per month on heating.
No A/C during the summer, just fans, save $60 per month.
Eat only at home, save $100 per month.
I wonder how many others are doing these kind of things to get out of debt???
Total over 18 months = $12,600. that will not be going to merchants, but will be going back to the bankers.
Also, after 10 months the bankers interest per month will drop from a high of $201 per month to $91 or less per month.
2016 is going to be a struggle for many companies as we enter the big recession. Reports so far is the spending this Xmas season is down, down, down. And I believe it will continue for many folks, over the next 2 years.
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