KNOXVILLE, Tenn. — The holidays are approaching, and that means wallets around the country are emptying as people search for the perfect gifts. WalletHub reported that around half of all shoppers across the United States who used credit cards to pay for last year's gifts still have that debt.
Kara Kending, who lives in Knoxville, racked up around $57,000 in debt. She the amount added up over time as she worked in sales, which convinced her she could make a sale and make the money back. She also said she began spending more money to care for her son after he was diagnosed with autism.
"I kept thinking, 'I'll make a big sale. I'll pay it off. It'll be fine,'" she said. "You know, you see your child there. They want something, they need something. Your first instinct is, 'Yes, do it.'"
She said she sought professional help prioritizing her needs to help her pay off most of the debt. However, she also said that meant thinking differently about Christmas.
"You don't want January to come, and you have that gut feeling, that horrible feeling, 'Oh my gosh, how am I going to pay this?' Because nobody wants that. Your family doesn't want that," she said.
Most people in the WalletHub survey said they have a budget, but many of them also said their budgets are flexible. If people don't stick to a budget, they may end up going into deeper into debt than they realize, according to Thomas Nitzsche, a spokesperson for Money Management International.
"Set a budget for how much you're going to spend on folks and if you're going to put that on credit, do your best to have an aggressive repayment plan in the new year," he said. "If you're at a point where you just can't afford it, say, 'Hey, we might need to reassess this year. Maybe we draw names, or we do homemade gifts.'"