Millennial Men Most Likely To Be in Credit Card Debt After the Holidays: 6 Ways To Avoid the Trap
Written by
Nicole Spector
Edited by
Gary Dudak
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Racking up debt this time of year is a risk for just about anyone participating in holiday shopping — and that debt can linger. For example, a recent WalletHub survey found that roughly 25% of Americans still are digging out of debt accrued during the holidays last year.
Though anyone who isn’t careful can land in debt during the yuletide, it appears that a certain group of people are most likely to do so: older millennial men and young Gen Xers. Another recent survey by CardRates found that men between the ages of 35 to 44 are most likely to incur debt this holiday season.
What can millennial men — and really anyone at risk of building up debt during the holidays — do to avoid this trap? Let’s take a look.
Make a Holiday-Specific Budget
A budget for your everyday life is a must, but so is a budget for the holiday season. This will keep you within the boundaries of reasonable spending.
“Determine how much you can afford to spend this year,” said Maya Sudhakaran, head of growth and acquisition at Plynk. “Make a list of everyone you plan to give gifts to, and specify the intended gifts (with respective costs). Seeing a full list with a cost breakdown can minimize the risk of overspending and help ensure that you allocate funds thoughtfully to each person on your list.”
Set Financial Goals for 2024 Now
It’s likely that you’re going to spend more during the holiday months than you would during other times of the year. As you prepare for this increase in expenditures, take a moment to review how you’ve been managing your finances to date, and get a jumpstart on smart money moves you can deploy in 2024.
“Kickstart your financial goals before the New Year,” Sudhakaran said. “Start putting action towards your financial goals now. Maybe invest $1 or a few dollars per gift into the same company you bought the present from. One of the best gifts you can give yourself is taking proactive steps towards a future of financial security. It’s a gift that gives the opportunity to grow until next year’s holiday season and beyond.”
Resist Buy Now, Pay Later (BNPL)
Buy now, pay later (BNPL) has become a go-to move for many consumers. It’s so tempting to get a high-ticket item now and just deal with paying for the brunt of it later, or in installments. But taking this route can be a trap, because at its root, BNPL is a form of debt in itself.
“BNPL can be convenient, but remember that it’s still a loan and it’s still debt,” said Tanya Peterson, vice president of brand at Achieve. “Most of the time, the purchase amount will be divided into four payments, with the first due when you buy the item, and then the other three every two weeks.
“That means you’re signing up for a loan in order to pay for something over a six-week period. Payment dates can be hard to manage, given the two-week cycle, and late payments can sometimes bring high interest charges and fees. Consider, honestly, if you can wait and make the purchase when you have the funds, and if BNPL is a positive financial move for you.”
Beware of the ‘I’m Just Browsing’ Mentality
Ever go on Amazon or pass through a shopping mall with the approach that you’re “just browsing?” Tread carefully with this behavior. Browsing can easily turn into spending.
“Whether online or off, make a plan of what stores you’ll visit, and what you’ll shop for at each,” Peterson said. “When going to a store in-person, go at less-crowded hours. And try to pay in cash, or with a debit card to limit what you can spend.”
Generate Extra Cash With a Side Hustle
It’s not what everyone wants to hear, but generating more income this time of year can make all the difference if you plan to dish out more money during the holiday rush. This could mean taking on extra work, such as a seasonal side gig.
“It’s not too late to find a part-time position or create your own position that extends into the new year (to pay for anything you do put on a credit card),” Peterson said. “This time of year, many people are happy to pay for some help that will give them more time. So you might be able to offer babysitting, pet care, house sitting or yard care service. You may find seasonal positions (beyond a part-time retail job — which can be very well-paying) at a catering business, or food or package delivery service.”
Make a Repayment Budget Now
If it’s impossible for you not to accrue some debt this holiday season, make a plan now for how you’ll tackle it and bring it down ASAP.
“Plan for debt repayments when you rework your 2023 budget to reduce your expenses,” said Richard Barrington, a financial analyst for Credit Sesame. “It’s easy for other expenses to find their way into your budget, but debt repayments should remain a priority. Any sacrifice you make to pay debts down faster is rewarded quickly.”
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