(KERO) — That the holidays are here and inflation is having an impact on many people's shopping lists. Inflation is still near a 40-year high.
Carl Gould with 7 Stage Advisors says inflation is taking about $4,000 to $7,000 out of the average American family’s budget this year. Yet credit reporting agency Trans Union says Americans' credit card balances hit a record $866 billion in the third quarter of 2022, which is 19 percent higher than the same time last year. The main culprits are Gen-Z and Millenials.
With the federal reserve raising interest rates throughout the year, what is charged on the credit card this month may end up costing even more next year.
“The trick is to find where your statement date is, let’s say it’s the 20th, and make your purchases right after that, the 21st and the 22nd," explained Gould. "Because it won’t hit your account for another about 30 days and then you’ll have 30 days to pay it off. So it’s almost like a 60-day interest-free loan.”
He says if a person can’t pay it off in that time, it’s probably best to dial back on the purchase all together. He also suggests that when the primary market gets too expensive, head on over to the secondary market: thrift stores and second-hand shops.
