FORT LAUDERDALE, Fla., Dec. 6, 2017 /PRNewswire/ -- Americans who are still paying for last year's gifts say they will spend less this year according to a new survey. The survey of 1,264 Americans focuses on those who have sought debt relief options and who are looking for ways to save money.
Over 45 percent stated they got into debt last holiday season. Of the respondents who incurred holiday debt last year, more than 70 percent are still paying it off while almost 30 percent have paid it in full. See the full survey results here.
Statistically, the holidays are the worst time of the year for family budgets. Long gift lists lead to overspending that ends up becoming debt. With that in mind, Consolidated Credit wanted to know how families facing challenges plan to get through the season without making financial burdens worse.
Nearly 25% said they are spending less due to a job loss or pay cut. The unemployment rate according to the Bureau of Labor Statistics last November was 4.6 percent as compared to 4.1 percent in November 2017 so the survey may suggest that lower wages or underemployment may be a factor.
The National Retail Federation says Americans will spend nearly $1,000, an increase of around 4 percent, but that's a national average. Almost 85 percent of respondent reported they plan to spend less this year while 17 percent said they were going to spend more.
Most survey respondents said they would spend up to $300 while only 6 percent said they would spend over $800. Nearly 32 percent will buy gifts for their pets and close to 60 percent will donate to charity.
42.15 percent of survey respondents purchase gifts using credit cards, over 38 percent use gift cards, nearly 35 percent use a holiday savings account and over 20 percent use a year-end bonus.
About: Consolidated Credit is one of the nation's largest credit counseling agencies. In over 20 years, they have helped over 5 million people overcome challenges with debt and other financial issues. Their mission is to assist families throughout the United States to end financial crises and solve money management issues through education and professional counseling. Visit ConsolidatedCredit.org for more information.
SOURCE Consolidated Credit