Christmas creep: How to shop early and smart to avoid holiday debt

CHICAGO - Halloween is just three weeks away but thanks to the Christmas creep, many consumers are busy shopping for the holidays now.

This week alone, two major retailers are hosting big seasonal sales. On top of that, a new NerdWallet survey released Tuesday showed holiday shoppers are planning to spend big this year.

In a Fox 32 money saver special report, Dawn Hasbrouck takes a look at what to buy now and later.

"While it’s okay to shop early in the season because it gives you more time to spread out purchases and manage your cash flow better, if you’re not careful it can lead to overspending and put you into debt come December," said consumer finance expert Andrea Woroch.

Woroch said another tip to help shoppers handle the Christmas creep is don’t feel pressured to buy all of your gifts early.

"There are going to be plenty of sales mirror many of these early holiday sales later in the season. Don’t try to cram all of your expenses at once because that could rack up a bill. If you’re carrying interest, that takes away the discount you got in the first place," Woroch said.

"Consumers are really ready to shop this year," said Kimberly Palmer, a personal finance expert with NerdWallet. "So, we expect that people will spend on average $925 on their gifts, which is more than last year."

That’s according to NerdWallet’s 2024 Holiday Spending Report. It was a bit of a surprise given the pressure inflation is putting on people’s budgets.

"Every year we’ve done this study. We’ve found that people are so intent on celebrating the season that whatever factors are working against them - whether it’s inflation, supply chain issues - they find a way to overcome those and still spend and celebrate because people are just really committed to making sure they have a celebratory holiday season," Palmer said.

It also shows consumers are ready to celebrate the season whether they have the money to do so.

"Number that always stands out is how many people are still paying off their debt from last year. So, this year when we asked people that question we found almost 30% of holiday shoppers are still paying off their debt from buying gifts last year," Palmer said.

So, if you are starting your holiday shopping early on, our experts say it pays to have a budget and be organized.

"I like using apps like Santa’s bag because this allows you to track your budget and your actual spend," Woroch said.

"They forget what they put in their closet, and they end up buying extra gifts. They overspend. That’s why the key here - if you’re going to start shopping early is to be really organized and to make sure you remember what you bought," said Palmer.

If you are not sure what to buy now, Woroch said there are a number of items shoppers should focus on.

"The early holiday sales offer some of the best deals on personal gadgets. Think wireless headphones, tablets, e-readers, as well as small kitchen gadgets," Woroch said.

"If I’m getting an item on my list for around 30% off, that’s a really good sale. We’re not seeing many deals that are going to be much bigger than that," Woroch added.

Woroch also recommends waiting for Black Friday to buy TVs and laptops and to wait for Cyber Monday to buy clothing and beauty items.

If you are still paying off last year's holiday gifts, NerdWallet suggests making a plan to pay those bills off. The company said you can start by talking with your family and friends about not spending as much on this year's gifts.

"Usually people are really open to that because everyone is facing these same pressures and feeling really tight budget this year," Palmer said.

NerdWallet added the key to that conversation is to have it early, before anyone has started their holiday shopping.