POSTED: Wednesday, December 29, 2010 - 7:11pm
UPDATED: Wednesday, December 29, 2010 - 7:51pm
UPDATE: 6:15 p.m.; A local financial planner thinks that number of people who charged gifts on their credit cards is much higher in El Paso.
Ed Daffron with First Command says, on average, he sees people paying off one year's holiday spending over twelve years. With an interest rate of 13%, that means $2,000 of holiday spending will rack up $1,600 in interest along with it.
"Unfortunately too many people only look at the monthly payment, make the minimum, and don't think about how it's going to cost them long term," Daffron said. He recommends you make the highest payment you can afford each month and also start saving now for next year's shopping so you can pay with cash.
The holidays may be coming to a close but the debt may last far into 2011 for some people.
According to a survey from the National Retail Foundation, 43% of shoppers had planned to use their debt cards to purchase gifts, while 28% planned to charge gifts on their credit cards.
Today we will talk to a financial planner about spending trends in El Paso and get advice on how to pay off those bills.