Posted by on November 19, 2016 11:25 pm
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Categories: Black Friday Business Christmas and holiday season Christmas economics Credit card Credit Rating Agencies Cyber Monday E-commerce Economy Finance Internet marketing KIM money Payment systems

It’s that time of year again… when Americans load up on debt to buy stuff they don’t need with money they don’t have because Kim Kardashian told them to…

Next week, Black Friday and Cyber Monday will kick off the start to the U.S. holiday shopping season, during which consumers are expected to spend a total of $655.8 billion this year.

With the average bill coming in at $938.50 for holiday spending, where are people finding the extra cash?

Visual Capitalist’s Jeff Desjardins looked back at the last five years of Equifax data to see how consumer debt correlates to holiday purchases.


One way consumers take advantage of Black Friday deals is through the issuance of store credit. Specifically, Black Friday traditionally sees a noteworthy surge in signups to private label cards – the kind redeemed at stores like Macy’s.

Each year, roughly half a million Americans are signing up for new accounts on Black Friday:

Furniture and department stores are among the biggest providers of this type of credit to consumers. Here are the five-year averages by industry for the months of November and December:


This bump in activity doesn’t stop with new signups for store credit. The average balances on store cards and credit cards both jump noticeably in the months following the holiday season:

Every year is different, but the data always follows the same trend.

Stocking up on Black Friday deals is not cheap, and extra dollars spent eventually make their way onto the credit card statement with the cost of interest added on.

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