DLNews Biz:

You are not alone if you wonder why people spend so much during the Christmas holidays. According to recent studies, on average, American consumers plan to spend nearly $942 on gifts this holiday season - more than $57 more than last year.

"On average, American consumers plan to spend $942 on Christmas gifts - $57 more than last year."

The top categories in gift spending are electronics, toys, and clothing. Despite these trends, consumers are still cautious about their purchases. A third of shoppers plan to buy less because of inflation, while 20.6% are worried about a recession.

Despite these concerns, more than one-fifth of consumers will use debt to pay for their gifts. A further 30 percent will finance their purchases with credit cards.

Most American citizens will spend less on friends, co-workers, and siblings. They will also spend less on parents and significant others.

Online purchases will make up almost half of all presents purchased.

The National Retail Federation reports that Americans will spend a whopping $1 trillion on Christmas gifts this year. That's about a fifth of Americans' money all year spent on Christmas gifts and decorations. That's not a bad feat, especially given that the average American will buy nine gifts.  

The most important statistic, however, is that nearly half of all Christmas gift purchases will be made online. Those who have tried to do their holiday shopping this way will likely find that queueing to pay can take up to three and a half hours. That's a big chunk of time to devote to the task.

The National Retail Federation also reported that half of all holiday gift purchases go toward family and friends. As a result, a lot of money is being spent on presents that people may never use or see.

It's no secret that the economic impact of the holidays is significant, but that doesn't mean we don't have a little fun with spending. Among the survey's findings is that one in five will borrow money to cover the cost of the festivities. Some consumers will even go so far as to stockpile holiday decor after the season is over.

Trim your holiday spending if the bottom line is too large to manage

One of the best ways to avoid overspending during the holiday season is to stick to a budget. If you don't plan ahead, the excitement of the holidays can lead to a lot of unnecessary spending.

If you don't have a large budget to work with, it's possible to trim your holiday spending by cutting back on other expenses. Sometimes, you may want to save money for college, retirement, or a car. Other times, you may have a high debt load and need to pay off some of that.

If you're worried about your financial health, it's a good idea to make a list of your monthly expenses. This can help you prioritize your bills, reducing your stress when it comes time to pay them. It would help if you also looked at your income. If you're not making much, you might want to cut down on your cable cord or side jobs to free up more money.