A survey of consumers who visited its Web site indicated that many intend to put less on credit cards for holiday celebrations this year, according to the National Federation of Credit Counselors.
The organization asked consumers visiting its site how they anticipate paying for their holiday celebrations. Over 3,800 respondents responded and 68% said they would pay cash for their gifts, decorations, food and entertaining this year. Another 12% said they would charge them but not revolve any charges, 10% said they would charge them and pay over time and 10% said they would use store lay away programs.
"Arguably, consumers are faced with spending decisions unlike ever before," said Gail Cunningham, spokesperson for the National Foundation for Credit Counseling. "Many have had their access to credit limited by issuers closing accounts or restricting credit lines. Others have self-imposed spending restrictions, instead choosing to pay down existing debt. However, the holiday season may be in a category of its own, tempting consumers to revert to old spending habits of days gone by."
As evidence that consumers might not be able to leave their credit cards at home when they go holiday shopping, the organization pointed to a survey from earlier this year that indicated a very low consumer savings rate.
The implications of the October survey could indicate that Americans are well-meaning, but those intentions may not translate into reality when they hit the stores. With no savings and a lack of preparation for holiday spending, consumers will likely revert back to charging their purchase if charging privileges are still open to them, the organization said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.