Holiday Spending

 

Seasons Greetings from Hopewell Federal Credit Union!

I came across this recently and thought I would share it. It’s interesting to note how people are handling the holiday shopping season in this economy.

According to an online poll conducted in November by the National Foundation for Credit Counseling (NFCC), consumers are much more concerned about paying down their existing debt load than they are with spending on holiday purchases.

More than 8,500 people responded to a Web poll, which asked “If you had an extra $500, would you…”

  • Pay down existing debt – 77%
  • Put it in savings – 14%
  • Use it toward holiday expenses – 7%
  • Spend it on yourself – 2%

A similar survey conducted in October by the NFCC showed that 68% of consumers intend to pay for their holiday purchases with cash, indicating that consumers are reluctant to charge.

The annual holiday survey from the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA) showed similar results:

  • 43% of consumers said they intend to cut back their holiday spending, compared to 55% last year.
  • The 43% figure is still much higher than in the previous eight years of 2000 to 2007, a period when the percentage intending to spend less never exceeded 35% and dipped as low as 21% (in 2002).
  • A key reason for this intended spending restraint is how consumers assess their financial situation compared to last year. Far more consumers said their situation was worse (36%) than better (19%), though nearly half (44%) said their situation was about the same.

Just a little something to think about as we head into the holiday season.

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