13% of Americans Think They'll Spend $1,000 More on the Holidays This Year Than Last

That's a pretty dangerous move, though.

Inflation has been wreaking havoc on consumers for well over a year, to the point where many people are beyond frustrated with the ultra-high cost of living. In a recent survey by Neighbor.com, 48% of respondents say they think they'll spend more money on the holidays this year due to inflation. And 13% think the 2022 holidays will cost them $1,000 or more extra compared to what they spent in 2021. Clearly, that's a huge jump.

Given that the cost of just about everything is up, it's easy to see why so many consumers expect to see their credit card bills rise in the course of their holiday spending. But spending extra could have serious consequences if it leads to lingering debt.

You can't afford a giant credit card balance right now

Any time you carry a balance forward on your credit cards, you sign yourself up to pay interest on your purchases. And that interest can add up over time, to the point where you could actually end up spending more on interest than your initial purchases.

Meanwhile, borrowing rates are up right now due to rate hikes on the part of the Federal Reserve. So carrying a balance on a credit card could be even costlier in the coming months than it usually is. And that's why it's not a great idea to rack up credit card debt this holiday season.

It may be time to cut back

If you can manage to spend more on this year's holidays than last year without landing yourself in credit card debt, then by all means, spend that extra money if you're comfortable doing so. The holidays only come around once a year. And if they're important to you and are something you look forward to, then you might as well spend your money on something meaningful.

But if spending extra money this holiday season will mean landing in debt, then a better bet is probably to rethink your plans and figure out how to reduce your costs. That could mean cutting out an entire holiday category -- for example, skipping the custom cards you normally mail out in December. Or, it could mean buying fewer gifts or less expensive gifts. 

You may even decide this is the year you'll give out homemade gifts if you have the time. Believe it or not, your friends and family members might appreciate those even more than a sweater from Target or a gadget you order from Amazon. 

Closing out the holiday season with credit card debt could put you in a tough position for the new year. And it could cost you a lot of money in interest -- more so than usual. So while inflation may be the driver of higher spending for a lot of people this year during the holidays, that doesn't mean you have to give in to it. Instead, you can cut corners and find a way to work within a budget that won't leave you grappling with credit card debt to close out 2022.