Assuming that people make only the 2-percent minimum payment, it will take 38 years to pay off the debt. 18-percent credit card interest rate. Md. As wish lists grow longer, shoppers are wondering how they are going to finance the holiday. Many will likely turn to credit cards, following a growing national trend reported by Myvesta. American credit card balances have increased by 60 percent in the last year.
People buy what they want and deal with the consequences later.
Dan Yancey, owner of Yancey's Apparel for Men and Women in Noblesville, Ind., estimates 60 percent of his shoppers use credit cards for holiday purchases. It's easier to return things for store credit if you pay with credit cards. He says credit cards also help shoppers document what they spend, since monthly statements record all purchases. Area shoppers also see the benefits of paying with credit. The Noblesville couple say credit cards help to defer holiday costs and are often required when ordering items on the Internet.