Holiday spending sprees threatened to send some American households over their own fiscal cliff. One study done last November found that shoppers expected to lay out an average of $854 for gifts during the season, a significant increase over 2011.
The question, as the bills come due, is how they will pay for their purchases. Many, it turns out, already have.
A survey from the Georgia Credit Union Affiliates found that two in three respondents said they have zero debt left over from their holiday spending, with a third saying they had saved throughout the year to cover the cost of gift giving.
Some of those who did carry holiday spending debt into the new year expect to eliminate it fairly quickly, with more than a quarter figuring to have paid their shopping bills within the first six months.
Still, the GCUA noted, “holiday debt remains a problem for many Georgians.” When asked how they plan to pay off their debt, one in three said they had no plan.
“To pay off existing debt, have a systematic plan, like monthly direct deposit or payroll deduction of payments, until the debt is paid off,” advised GCUA’s Kim Wall.