'Tis The Season To Spend Wisely: Americans' Holiday Shopping Budgets Increase After Two Years of Limited Gifting

WILMINGTON, Del., Nov. 18, 2011 /PRNewswire/ -- After years of saying "Bah Humbug!" to pricey holiday gifts, Americans are ready to make the season brighter by spending more. According to a survey by ING DIRECT USA, nearly three-quarters (72 percent) say they plan to spend the same or more than they did in past years. In fact, most (71 percent) say they are equally or less concerned with holiday spending this year than they have been in the past.

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"A confident consumer needs to be a smart consumer. With an increase in seasonal spending expected, shoppers have a positive outlook about their finances as the holidays quickly approach," said Arkadi Kuhlmann, President and CEO of ING DIRECT USA. "Recognizing the value of long-lasting gifts and proper budgeting throughout the year should allow consumers to spend sensibly without putting them in debt for the New Year."

How will their spending breakdown?

• $1,000 or more – 22 percent of adults say they plan to spend $1,000 or more this year, compared to only 10 percent in 2009
• $300 or more – 67 percent of adults say they will spend $300 or more, compared to just 54 percent of adults in 2009
• Less than $300 – 29 percent of adults say they will spend under $300, while in 2009 this percentage was over a third (34 percent)

To make their holiday purchases, Americans have learned the pitfalls of piling up credit card debt. About three-quarters (73 percent) say they plan on using cash or debit cards to pay for holiday gifts this year instead of using credit cards (20 percent). 

Consumers plan to continue these smart spending habits into the New Year:

• Americans proud of purchases – More than half say they never regret what they spend (55 percent) and typically don't have holiday debt (53 percent)
• Little debt for the new year – More than one-third of Americans (34 percent) say they are able to pay off holiday debt in one month or less, and just over one in 10 (13 percent) say it will take them more than two months to pay the holiday bills

Survey Methodology

The national phone survey was conducted within the United States by TNS on behalf of ING DIRECT USA from June 22 to June 26, 2011 and included 1,000 adults age 18+. No estimates of theoretical sampling error can be calculated.

About ING DIRECT

ING DIRECT, the nation's largest direct bank and largest thrift, is dedicated to inspiring Americans to become a nation of savers. Since its inception in 2000, more than 7.6 million Americans have entrusted their savings with ING DIRECT, building the bank to nearly $91.3 billion in assets.  ING DIRECT has developed a comprehensive social media Savers Community, including Twitter, Facebook and it's We, The Savers blog.  For more information about ING DIRECT call 1-800-ING-DIRECT, and for information about its commitment to financial education visit Planet Orange. 

Style note to Editors: ING DIRECT is always capitalized and never referred to as ING

MEDIA CONTACT:
Laura DiLello, ING DIRECT USA
302-467-6449
[email protected]  

SOURCE ING DIRECT USA