Why consumers overspend during the holidays and what to do about it [Video]

The holiday season is a time to give thanks, reflect on the past year, and spend time with family and friends. However, if you’re not careful, it can also be a time you overspend on holiday purchases.

About 83% of Americans plan to buy gifts for friends and family this holiday season, according to a NerdWallet poll.

Americans expect to spend an average of $1,014 on Christmas or other holiday gifts in 2024 — “substantially more” than the $923 reported last year, according to a Gallup poll published Oct. 25.

Roughly 10% of consumers expect to draw from their emergency fund to buy gifts, and 9% will prioritize gifts over household bills such as utilities and debt payments, according to the NerdWallet survey, published Oct 8.

Almost half of shoppers will fund this year’s spending with loans or credit cards, according to a recent surveyby professional services firm EY. Meanwhile, 28% of people are still paying off credit …