US States With Worst Financial Struggles Post-Christmas

US States With Worst Financial Struggles Post-Christmas Image/Shutterstock

VoM News Desk | December 20, 2024 | 10:09 PM IST | Articles/Editorials, Featured by VoM, United States of America, World | Follow on Google News

US States With Worst Financial Struggles Post-Christmas

Why residents in North Dakota and Vermont will be regretting their Xmas binge-spending come January

Key Points:

• New study reveals which US states searched for budget and debt keywords post-Christmas
• North Dakota residents had the biggest holiday spending hangover, followed by those in Vermont and South Dakota
• Financial advisor shows you how to plan for before and after the holiday season.

Gifts, food, lights, decorations, Christmas parties, and outings to Santa’s grotto – there are a hundred and one things to tempt us into spending money over the festive period.

“All that Christmas cheer often comes with a steep financial cost, leaving many Americans feeling the strain in January,” says Fred Harrington, CEO of Coupon Mister, an online platform that provides access to thousands of discount codes, coupons, and deals.

Now, Coupon Mister has conducted a study to find the states where holiday overspending is the highest.

Using search volume data on holiday debt and budget-related keywords, they calculated the density of searches per 10,000 residents in each state.

Here, Fred and the Coupon Mister team reveal the study’s results and discuss the importance of financial literacy in tackling post-holiday debt.

Table 1: Top 10 States With The Biggest Financial Hangover After Christmas

Who Had The Biggest Holiday Hangover?

People searched the most for holiday debt and budget-related terms in North Dakota, with a rate of 169.15 searches per every 10,000 people.

This was a massive 12.54 searches ahead of Vermont, the second on the table with 156.61 searches per 10,000. This was the biggest gap between scores on the table.

The gap between Vermont’s score and that of the state who came third on the list, South Dakota, was also large (12.16). South Dakota’s rate per 10,000 was 144.45.

After the top three, the scores became more uniform, ranging from 140.81 for Delaware in fourth place to 134.71 for Alaska in eighth place. The difference between these scores was 6.1.

The gaps between overall search rates widened again at the bottom of the table, with Maine scoring 129.9, 4.81 below Alaska, and New Hampshire scoring 125.96, 3.94 below Maine.

Did Population And Median Household Income Have An Effect? (US States With Worst Financial Struggles Post-Christmas)

Only five states in the USA have a population of under 1 million, and interestingly, all five of them (North Dakota, Vermont, South Dakota, Wyoming, and Alaska) are among the top 10 in Coupon Mister’s study. Of the other five states, none have a population above 1.5 million, which puts them among the bottom 10 states by population.

Five of the states in the top 10 are among the top twenty states in the nation when sorted by median household income.

New Hampshire, which came 10th on the table, has the highest median household income (sixth in the country). Montana, which was 38th in the country for searches, had the lowest median household income.

“This concentration could suggest that those with a higher median household income feel like they can, or feel pressured to, spend more over the festive season, which they then regret later,” says Fred.

Fred’s Top Tips To Recover From Holiday Overspending

Fred Harrington gives his top tips on how you can recover if you’ve spent a little too much during the holidays:

Prioritize Credit Card Payments: Focus on high-interest cards first. If possible, transfer balances to a card with a lower rate or consider a temporary 0% APR offer to reduce interest costs.

Budget For Recovery: Create a lean budget for January and February. Cut back on discretionary spending—like dining out or streaming services—and redirect those funds toward paying of9f holiday debt.

Also Read: Venture Capitalists reveal how to experiment without risking everything

Avoid Retailer Tricks: During the holidays, retailers often try to create a sense of urgency, like “limited-time offer!” messages, to push overspending. Post-holiday, avoid similar clearance sales that tempt you to buy items you don’t need. “You can create a gift plan or shopping list for next time to stay disciplined,” says Fred.

Resist Minimum Payments: Credit card companies profit when you only pay the minimum. Pay more than the minimum to reduce the interest and shorten your repayment timelines.

Build A Financial Buffer: To avoid repeating overspending patterns, start a small holiday fund now for next year and automate deposits into a separate savings account.

Fred Harrington, the CEO of Coupon Mister, commented:

“Planning your finances for the holiday season starts with setting clear boundaries. Begin by listing all your expected expenses before the holidays—gifts, decorations, travel, and those sneaky extras like festive outings or meals out at restaurants. Then, assign a realistic budget to each category and stick to it.

“The key here is prioritization. Ask yourself, ‘What matters most?’ Splurging on one big thing you love is fine if you trim costs elsewhere.

“As for after the holidays, this is where many people trip up. You’ll need a financial cushion for January, so include that in your plan now. Consider scaling back slightly on gift spending to allocate funds for
post-holiday expenses—utilities, credit card bills, and even a little extra for savings. Automating savings in advance is also a good idea as it reduces the temptation to overspend.

“And finally, take stock of what you already have. Repurposing unused items or skipping unnecessary purchases can stretch your budget further than you’d think. A little planning ahead will leave you starting the new year feeling prepared instead of panicked.”

Source: US Census Bureau

VoM News Desk

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