Parents Willing To Take On Credit Card Debt For Happier Holidays
Many parents will go to great lengths to keep their children happy, even if that means going into credit card debt. According to the latest survey from Lexington Law, 57% of parents are willingly take on credit card debt to make their children happy for the holidays.
This should come as no surprise to anyone who has children. From sleep time to personal spending, parents sacrifice nearly everything they have for the sake of their kids.
The survey indicates that parents with a household income of $35,000 or less were willing to accrue $700 in holiday debt for their kids. Surprisingly, parents with a household income of $75,000 or more were only willing to take on $300 of debt during the Christmas season.
The consumers in the survey that used their credit cards last year averaged $1,100 in charges for the holiday season. More than half of the parents said they had not saved for the holidays as of September, and 36% said buying presents was more important than sticking to a budget or not taking on more credit card debt.
One in five adults participating in the survey opened a new credit card last year during the holiday season, and 5% of consumers said they had opened three or more store cards last year.
“Americans place so much emphasis on making sure that every one of their children and loved ones have presents to open during the holidays, but few think about what that means for their overall financial health,” said Randy Padawer, vice president of credit repair services at Lexington Law. “The holiday season is the easiest time to slip into some bad financial habits, which can lead to serious damage to your credit.