Study: 1 in 4 New York Holiday Shoppers Will Spend Themselves into Debt

The holiday shopping season is coming with a massive warning.

Stores have started rolling out the festive decorations and announcing attractive sales on products guaranteed to be on many wish lists this year.

This year, studies find shoppers are entering the holiday season with increased anxiety.

The economy is one of the primary concerns, with inflation continuing to cause skyrocketing prices on everything from tinsel to toy trucks.

According to CNBC, just 52% of holiday shoppers that make over $100k feel confident they can "easily afford" everything on their Christmas wish lists this year.

Meanwhile, just 33% of those making between $50,000 to $90,000 feel the same way. Just 18% of those making below $50k believe they can comfortably afford all holiday costs.

Holiday Debt to Be a Major Problem in 2024

A new study by MarketWatch found that about a quarter of all holiday shoppers are bracing to take on holiday debt to cover their expenses.

The outlet polled 3,000 holiday shoppers about their feelings about the upcoming season and found a majority of them, 57%, are anticipating to exceed their budget.

Even more, about 1 in 8 respondents admitted to still paying off the debt they took on last Christmas. Of that group, about 60% believed they will take on even more debt this year.

Interestingly enough, the study also found that half of all respondents believe that Black Friday deals are a bunch of bologna. When asked, 52% of those asked think Black Friday and Cyber Monday deals don't offer good enough discounts.

However, that's not stopping 55% of respondents from perusing the sales those two days.

For those planning to take advantage of those discounts, you should be aware that some bargains may be too good to be true.

Beware of Black Friday Scams

Experts say scammers are taking advantage of the rising anxiety around holiday shopping because more people will be trying to save as much money as they can.

Black Friday falls on November 29 this year, and the day is expected to bring in billion in online sales alone. The day is also expected to cause a 22% rise in fraud losses,

Mike Epifani of Bonus.com said there are 4 ways you can protect yourself from being taken advantage of by a scammer.

1. Stick to known brands and verified online sellers. Scammers will try to sell counterfeit, low-quality copies of popular items. Avoid third-party sellers and unknown brands.
2. Avoid falling for Black Friday promo notifications on apps, email, SMS, or social media - especially if the ad claims you "won" a special shopping rate. This type of scam will be prevalent in the coming days.
3. Smishing scams will also be on the rise, where scammers will send victims fake package delivery alerts. Do not click on any messages asking you to reschedule a delivery or confirm an address.
4. Scammers will try to send phishing messages by posing as a retailer to ask a victim to claim a special offer or request account verification. Always double check the sender before responding.

Epifani also recommends doing online transactions over a secure Wi-Fi network, as public Wi-Fi is more at risk of being comprimised.

He also recommends making online purchases with a credit card over debit, as the prior offers more fraud protection.

Happy Holidays!

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