How to manage holiday debt and avoid repeating the same mistake next year.

• This holiday season, on average, shoppers are expected to spend $1,778, which is an 8% increase compared to the previous year.
• As the holiday season begins, Americans are expected to accumulate more credit card debt.
• Without feeling like a Grinch, how can you manage this season's shopping expenses?

The upcoming holiday season may result in substantial credit card debt for some shoppers, while others are still paying off debt from last year's gift buying.

According to a recent holiday spending report by NerdWallet, 28% of shoppers who used credit cards have not yet paid off the presents they bought for their family and friends last year. The study surveyed over 1,700 adults in September.

"The holidays are an expensive time of year, with consumers at risk of getting into credit card debt that can persist even after the decorations are taken down, according to Sara Rathner, NerdWallet's credit cards expert."

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In 2024, the credit card debt will be even higher, reaching $1.14 trillion.

According to the National Retail Federation, it is predicted that the total spending during the period from November 1 to December 31 will reach a record high of between $979.5 billion and $989 billion this year.

On average, shoppers may spend $1,778 during the holiday season, which is an 8% increase compared to the previous year, according to Deloitte's holiday retail survey. Meanwhile, NerdWallet found that about three-quarters of consumers plan to use credit cards to make their purchases.

The cost of borrowing money through credit cards has reached an all-time high, with the average credit card charge being over 20%.

How to avoid overspending

According to Howard Dvorkin, a certified public accountant and the chairman of Debt.com, it seems that the American consumer has been conditioned to believe that spending a substantial amount of money on loved ones is necessary.

It doesn't have to be that way, he said.

Candy Valentino, author of "The 9% Edge," stated that there is no magic wand, and we must simply tackle the challenging tasks, which primarily entails establishing a budget and monitoring expenditures.

To make room for holiday spending, Valentino suggests reallocating funds from other areas by canceling unwanted subscriptions or negotiating down utility costs.

""A few hundred dollars here and there can accumulate quickly, but having a stash of cash can help avoid taking on new debt," she said."

How to save on what you spend

To save money on holiday gifts, Valentino recommends starting early shopping and taking advantage of early deals and discounts, or pooling funds with family and friends.

To curb temptation, she advised staying away from the mall, unsubscribing from emails, opting out of text alerts, turning off push notifications in retail apps, and unfollowing brands on social media.

Valentino stated that it would decrease your need and desire to spend.

Rewritten: Instead of gifts, consider making something from scratch or investing in individual stocks or bonds to create a lasting impression.