Overspending is a huge concern for consumers this holiday season. Several surveys this holiday season revealed that this is the number on concern for shoppers for the fourth quarter of this year. Sixty-nine percent of shoppers have been making holiday budgets in order to combat overspending, but 62 percent claimed that they would go over their budget if it meant getting a gift they knew would be perfect for the person.
During the holiday shopping super discount day, known as Black Friday and it`s partner Cyber Monday, consumers spent over $52 billion according to data from the National Retail Federation. While this news may be good for the economy, data shows that more and more consumers are using their credit cards to pay for these holiday items. This means that because consumers often overspend during the holidays, they also overcharge to their credit cards during this time as well. Surveys conducted before Black Friday revealed that more shoppers planned to use their credit cards as their number one finance source during the Black Friday weekend than previous years. According to a survey by Discover Financial Services, 29% percent of shoppers were electing to use credit cards this year, as compared to 26% the previous year. The survey also found that more consumers were ok with spending over their holiday budget than last year. Last year 10% of shoppers surveyed were ok with overspending on their holiday budget, this year the figure stands at 14%.
Will power is most definitely an issue when it comes to online and in store deals during the holiday discount season. A Black Friday survey by the ARG/UBS Post found that 43%of people surveyed admitted to spending more money because their deals were so good. This number is up four percentage points from last year. All of this means that 2012 will be the beginning of a year of debt for many holiday shoppers.
While consumers had been dedicated to better spending habits and debt elimination during the other times of the year, it seems that the holiday season is a different ballpark, and consumers will do the best they can to give the best gift they can. This break in debt maintenance may prove costly to holiday shoppers when they receive their credit card balances in January of 2012.