Tag Archives: filing bankruptcy after holidays

Holiday Spending Carries Debt Risk

Consumer Spending Around the Holidays

Each year around the holidays we write an article that has to do with consumer spending. This is because there is a significant amount of money spent between Halloween and Christmas. Many shoppers spend beyond their means, which is an area of concern. There’s something about this time of year that tempts folks into digging so deep into their pockets that they;re unable to pay it all back.

There are unpleasant financial consequences to spending more than we earn.  Building excessive debt over the holidays may prove difficult to pay back later.. Also, incurring debts to close to filing bankruptcy can be seen as fraudulent behavior. For example, gift purchases over a certain amount can be considered as “luxury” goods which means they may be considered non-dischargeable.

Consumer spending over Black Friday and Cyber Monday exceeded previous years, and the holiday season is not over yet! Every Result You Need To Know From Black Friday, Cyber Monday And The Holiday 2018 Season So Far

Financial Data Shows Costs Add Up Quickly

Financial data analysts are predicting that 2018 is going to conclude with massive consumer spending. Unfortunately, this doesn’t equate to the ability to pay off debts. In previous years, the average American would personally spend about $1,000 on holiday gifts. Low gas prices are going to provide some relief this year, but if you travel by plane, or host holiday parties, expect costs increase well above the average spend. Treat yourself, but watch the budget!

Overspending During Holiday Is Easy To Do 

    • 2 Grande Starbucks Cafe Mocha,$8.85
    • 1 Vehicle Country Christmas Light Show,$20.00
    • Lunch for two at Panera Bread,$24.00
    • Four games of bowling for Two,$44.00
    • 2 Movie Theatre Tickets plus popcorn and drinks,$58.00
    • Manicure and Pedicure,$75.00
    • Couples Message,$125.00
    • Car/SUV Detailing Service,$150.00
    • Dinner for 2 at The Capital Grill,$180.00
    • Milwaukee Nutcracker Ballet for Two,$210.00
    • Round Trip from Milwaukee to Charleston S.C.,$399.00
    • Average Cost to Host a Holiday party,$500.00
    • Average amount spent on Gifts,$1,000.00
      *amounts can vary

Beware of Credit Cards Piling Up

Excessive credit card debt is one of the leading causes of bankruptcy. Avoid putting purchases on credit cards without considering how difficult it may be to pay back. Credit cards carry high interest rates.  If the balance can’t be paid off in its entirety, then the items purchased end up costing significantly more in the end. Department and big box stores will temp consumers to open new cards to take advantage of special offers. Be aware of the risk vs. benefit. The best scenario for holiday spending is not to by now and pay later, but instead to plan and budget within the means of your household.

Filing Bankruptcy After Holidays

Holiday debt is in addition to debt and expenses you already have such as a mortgage, rent, car payment, groceries and gas. Once the hype of the holidays is over, many consumers are left wondering how to pay these additional bills off. If you had been leaning towards filing bankruptcy, it’s especially important to be cautious about holiday spending. For information about bankruptcy options including how to eliminate debt, talk to a Wisconsin bankruptcy attorney. The experienced bankruptcy attorneys at Debt Advisors can steer you in the right direction.