Cash Gifts for the Holidays: A Popular Choice Amidst High Debt

For some, giving the gift of cash is the best thing you can do. This is especially true for the millions of Americans who have a total of $4 trillion-plus of outstanding consumer debt, according to records from the Federal Reserve.

In fact, a survey from Country Financial, an insurance and financial service company, found that nearly half of respondents would choose to have one of their debts paid off, rather than getting a vacation or luxury item.

HOLIDAY SPENDING FOR AMERICANS EXPECTED TO MIRROR LAST YEAR

Of those who welcome assistance in knocking out their debt, 20 percent are looking to pay off a mortgage while 13 percent are looking to pay off credit card debt, 9 percent are looking to pay off personal loans and 7 percent are looking to pay off student loans.

HOLIDAY GIFT CARD SCAMS ARE RISING, HERE’S HOW YOU CAN AVOID THEM

Likewise, the survey found that if money were no object, the average American would need $82,895 to pay off a mortgage and various debts while individuals who prioritize credit card debt would need $41,159. Student loan borrowers, on the other hand, would need $50,914 on average while personal loan borrowers would need $16,992.

THE DOS AND DON'TS OF HOLIDAY GIFTING AT WORK

The results of Country Financial's survey are consistent with trends from the previous year.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

A 2018 survey from financial marketplace LendEDU found that the majority of respondents would prefer an equivalent student loan payment over an $800 ticket to the hit Broadway play "Hamilton." Less than a fifth would prefer seeing the pricy musical over a cash gift.

Slightly more than a third of respondents would prefer a solo week-long vacation in Iceland valued at $1,436 as a gift.

When it comes down to cash and cryptocurrency, the former reigned supreme on holiday wish lists. More than half of respondents said they would rather receive $1,000 student loan payment over an equivalent amount of Bitcoin. Conversely, a little more than a third said the opposite.

CLICK HERE TO READ MORE ON FOX BUSINESS

Anyone planning to help a family member or friend out with a monetary gift should know that for 2019 and 2020, the annual gift tax exclusion is $15,000, according to the IRS. Contributing more than that amount can be taxed, though, there are some exceptions for spouses and loan co-signers.