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Credit Card Applications » News » Other » Consumers Promise to Curb Holiday Spending Due to Financial Distress

Consumers Promise to Curb Holiday Spending Due to Financial Distress

Consumers Promise to Curb Holiday Spending Due to Financial Distress
December
6
The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

A poll conducted by the National Foundation for Credit Counseling (NFCC) showed that half of the respondents plan to curb their spending this holiday season, while a little more than a third said they won’t spend anything at all for the holidays, according to last month’s  NFCC’s Financial Literacy Opinion Index.

What’s the reason behind this Scrooge-like attitude? In a word: finances. Respondentswho said they don’t plan to open their wallets for the holidays said financial distress was the reason. And the ones that will be spending less than usualsaid that they were worse off financially this year than last.

All told that’s 87% of respondents with a pretty bleak financial outlook through year’s end. But believe it or not, that’s an improvement over last year when 91% of those polled said they were either not planning to spend or were going to dial back on purchases.

And the survey says

The poll was taken by 1,413 people.Here is how they responded to: “ This holiday season I will…”

–          cut back on spending, since I am worse off financially this year   50%

–          not spend at all, because I anticipate further financial distress   37%

–          spend as I did last year because my financial life is stable   11%

–          spend more than last year because I am in a better financial position   3%

Retailers count on holiday spending to boost sales, so while tightening belts may be the best thing for consumers, the gloomy forecast might spell bad news for the economy. Consumers who still plan to spend, and others who change their mind at the last minute, might want to lower their holiday bills with cash back rebates from their credit card issuers. Discover, for example, is offering 5% cash back on all online purchases, while Chase Freedom offers 5% back at Best Buy and Kohl’s. Citi Dividend offers 5% cash back at Macy’s as well as any toy or electronics store. Even though it’s the season for giving, it’s nice to get a little something back.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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