Now that stores have been decked out for holiday cheer and Black Friday has come and gone, the holiday shopping season is truly upon us. It’s also the time for increasing credit card balances, which rise in November with the holiday ramp up; December splurges; and in January with those things you were hoping for but didn’t get from someone else. Janet Dedrick explores this more in her article on the Equifax Finance Blog, “Credit Card Shopping Rises for the Holidays.” Some of her credit wisdom can help us better understand our own spending habits.The flare up of credit card debt in those three months is largely due to a lot of buyers who mostly stick to cash throughout the year pulling out their own personal layaway. Interestingly, though, while many new accounts carry a balance during this period, the average balance doesn’t change.
Data about credit card balances seems to suggest that total holiday season balances are lower than they have been in the past. This is further evidence that Americans are paying off debt, or deleveraging. On the other hand, some are reporting about the most profitable Black Friday and Cyber Monday ever. So this could be a sign of both the credit card market bouncing back and more fiscally responsible consumers hitting the big deals.
For some more in-depth review of holiday credit card trends, check out the whole story over on the Equifax Finance Blog. November 30, 2011 | Ben Heisler
