Holiday Spending: 69% of Americans plan to go into debt for the holidays

Mgn 1280x720 71219c00 SripwAccording to a study by Credit Karma, 69% of Americans plan to take on debt to cover costs over the holidays this year. Of those, 38% plan to go into debt just to cover groceries for holiday meals.

This comes after record inflation saw poultry prices increase 15% since last October, and other cooked-at-home food prices increase by 12%, according to data from the USDA.

A similarly large portion of Americans, 70%, say that they’re going to rely on holiday sales and Black Friday deals, and 63% say that you’re going to buy fewer gifts than in previous years due to inflation.

For South Dakota however, things may not be as bad as they sound.

South Dakotans handle their debt well, according to a study by WalletHub. South Dakota has the 5th highest average credit score in the country at 715, only a few points behind Massachusetts, Vermont, New Hampshire, and Minnesota.

Source: WalletHub
WalletHub data also shows that people in South Dakota tend to have more savings than elsewhere in the country, with Sioux Falls residents having more savings relative to their expenses than any other city in the country at 646%. This means that Sioux Falls residents have savings equal to roughly 6 months of expenses.