A recent survey of more than 300 adults in the United States and Puerto Rico reveals that 63% of Hispanic consumers prefer to shop online rather than visit physical stores, even during a holiday season marked by rising credit card debt. The convenience of online shopping is transforming consumer habits, but financial experts warn this trend could put family finances at risk without proper planning.
The survey data shows concerning patterns in both shopping frequency and existing debt levels. Thirty-four percent of participants shop online two to three times monthly, while 8% make online purchases two to three times weekly. Without clear monthly budgets, these frequent purchases can easily cross what financial experts call the red line of family economy.
Despite financial challenges, most respondents plan significant holiday spending. Forty-four percent intend to spend between $100 and $500 on year-end festivities, while 26% plan to spend between $50 and $100. Fifteen percent will invest between $500 and $1,000, and only 3% plan to spend more than $1,000. Eleven percent of respondents do not plan to spend anything during the holiday season.
Payment method preferences show debit cards representing 25% of online purchase preferences, while credit cards account for 13%. This preference for credit becomes more concerning when viewed alongside existing debt levels. Many respondents arrive at this holiday season already carrying substantial credit card debt, with some balances reaching as high as $20,000.
Shirley Bolano, a financial journalist expert at https://www.consolidatedcredit.org, explained the risks: When people don't know their debt-to-income ratio and get carried away by the emotion of discounts, it is very easy to fall into the cycle of debt. Enjoying the holidays is important, but doing so at the expense of your financial peace of mind can turn the celebration into a problem that lasts all year.
The survey reinforces the importance of financial planning as a crucial tool to prevent year-end purchases from becoming a burden. Creating realistic budgets, understanding debt-to-income ratios, and establishing clear spending limits before taking advantage of sales events like Black Friday can make the difference between closing the year with financial stability or accumulating more debt.
For consumers already feeling they have lost control of their debts, Consolidated Credit offers free counseling to analyze individual situations and help find appropriate solutions for financial problems. The organization also provides educational resources to help consumers learn better money management techniques and avoid the cycle of debt that can result from unplanned holiday spending.
