41% of Holiday Shoppers Plan to Spend Less than Last Year
Friday, November 18th, 2022
You might see fewer gifts, less decorations, and more at-home celebrations this holiday season, according to findings from a consumer survey by ScoreSense®, a credit score monitoring product. The survey focused on consumers' plans for spending and how they expect to pay.
A new consumer survey on holiday spending by ScoreSense reveals the following:
Almost half of respondents (49%) said they plan to use cash to finance their holiday spending.
41% of survey respondents said they plan to spend less than last year on holiday gifts, décor, and travel this year.
15% of respondents believe holiday spending will somewhat or significantly affect their current debt. 29% are unsure how it will affect them.
19% plan to reduce holiday travel to better manage their budgets this year.
Almost half of respondents (49%) said they plan to use cash to finance their holiday spending. (Our post-holiday spending survey in January 2022 found that 49% of respondents said they used cash and had no credit cards to pay off.)
25% of respondents plan to pay off credit cards immediately.
"Inflation is the Grinch that is stealing from a lot of families this holiday season," said Carlos Medina, senior vice president at One Technologies, LLC., which offers ScoreSense. "While many respondents in our survey said they intend to pay cash and pay off credit charges immediately, we still see that a lot of families are struggling."
A recent analysis by ScoreSense of consumer credit activity showed a continuation of credit spending, overspending, and late payments. Additionally, the analysis showed that older adults also are experiencing the same increase in delinquencies and spending over credit limits (Card Over Limit), which shows the stress this economy can put on a fixed income.