Decline in credit card debt use expected for holiday season

11/18/2009

A recent survey from the National Retail Federation indicates people may be less likely to take on credit card debt during this year's holiday shopping season.

According to the poll, only 28.3 percent of respondents said they would pay for purchases with credit cards during this holiday season, which is a 10.1 percent drop from the 31.5 percent who said they would do so in last year's survey.

"With many holiday shoppers focused on spending within their limits, it’s no surprise that fewer people will be relying on credit cards this year," Tracy Mullin, president and CEO of the National Retail Federation, said.

Though credit card use is expected to fall, the survey showed that more people plan on relying on cash when it comes to making holiday purchases. Of respondents, 24.9 percent said they would purchase gifts with cash, which is a 9.1 percent increase from the 22.8 who said so last year.

When it comes to overall holiday shopping, a recent Burst Media survey shows that 62.8 percent of respondents said they plan on spending the same or less than they did last year. Furthermore, 85.3 percent of those polled plan on shopping online this year.

More Money Management News

10-07-2010

Consumers cut back on some spending in 2009

10-06-2010

Consumers may spend more this holiday season

10-05-2010

Taxes an important part of personal finance budgeting

09-10-2010

Location may play a role in consumer credit card debt

08-05-2010

Tokenization may save travelers credit card debt, credit score damage

08-04-2010

Incomes, spending remain flat in June while amount saved increases

07-16-2010

Credit card debt, financial reforms pass Congressional test

07-08-2010

Illinois announces sales tax holiday for back-to-school items

07-03-2010

Fed overdraft rules now in play

07-02-2010

Extension to unemployment benefits delayed

Related Resources