Consumers are expected to spend less than this holiday season compared to the previous, even shopping began earlier and crept into Halloween due to the coronovirus epidemic. A US news poll of 1,500 consumers in November about holiday spending plans revealed plans to spend 33% less this year than the previous year.
More than half of those polled said they intended to spend less than $ 499 on holiday gifts, food, travel and decorations. The survey also asked consumers how they plan to shop and whether they expect to take a loan after the holidays.
Other important findings from the survey:
- Most consumers said they do not envision bringing a holiday loan in 2021: only 7% plan to keep a balance or pull out Holiday loans.
- About 45% of the respondents said that they plan to buy most of their gifts from online retailers big and small.
- More than a third of shoppers expect to use credit cards as their primary method of payment.
- A quarter of consumers intend to cash out credit card rewards for holiday expenses, and 24% will use credit cards to earn rewards.
More than half of consumers said they plan to spend less than $ 499 on holiday expenses, compared to 48% intended to spend that amount in 2019.
About 45% of consumers plan to do most of their leisure shopping with online retailers, big and small. Small businesses are the primary shopping source for 16% of consumers surveyed.
Most respondents stated that they plan to pay with plastic this holiday season; 35% expected to use a credit card; And 31% intend to purchase with a debit card as the primary mode of payment.
The loan is not part of the deal for most holiday shoppers. Just 7% said they plan to keep a balance for holiday expenses compared to 8% in 2019, and fewer than 7% expect to take a loan for holiday shopping.
Most consumers stated that they are ready for holiday shopping, whether it is to make a shopping list, budget, do comparative shopping, or earn extra money for gifts.
About 60% of the people said that they have either started saving for the holidays or have saved all they need for holiday expenses.
Among respondents, 24% stated that they plan to use credit cards for holiday expenses to earn rewards, and about 25% intend to cash out credit card rewards for holiday expenses.
- US News ran a nationwide survey in November 2020.
- The survey sample came from the general US population, and the survey was configured to be representative of this sample.
- The survey asked 10 questions related to holiday expenses and credit cards.
Supporting Holiday Credit Card Features for 2020
If you plan to shop more online this year, but spend less, then a holiday credit card is a good tool. A credit card for holiday shopping can help protect you as you earn rewards and redeem them for holiday gifts; Finance your purchase interest-free; And even get free shipping.
Earning Awards: There is a holiday season, but there is nothing wrong in earning a little money for yourself. a Gives credit card Can help convert holiday expenses into cash back, travel and other rewards that you can use later.
Redeeming Rewards: If you have rewards to use, redeeming them may make your holiday budget a bit more jolly. Cash back card You can easily redeem your rewards for statement credits, which you can use to pay yourself for holiday expenses.
some Credit card travel You allow prizes to be used for gift cards and other gift purchases. This can be valuable if you have stocked travel rewards but do not plan to use them this year.
Introductory offer: A with card 0% annual percentage rate The period can give you interest-free, usually at least 12 months time to pay for holiday purchases. If you cannot pay the balance before applying interest, it can be a risky move, but if you have a payment plan it can help you manage expenses.
free shipping: Some offer credit cards Free Shipping and Returns, Which can remove some friction from online shopping. Many consumers plan to shop online this holiday season due to coronaviruses, and cards that offer free prompt shipping from retailers can help shoppers make last-minute purchases.
How A Holiday Credit Card Can Help?
Credit cards are not the only method for holiday expenses, but they can be a convenient and secure option. Cardholders can take advantage of security and other features that can reduce stress this holiday season.
Fraud protection Every card purchase puts you at risk for fraud, as thieves can steal your card information online or when you use your card at a store. But a debit card gives criminals a straight line to your checking account and protects the consumer from loss or theft.
Extended Warranty Protection. Buying Big Ticket Electronics? The retailer will likely ask if you want to purchase an extended warranty for your item. If your credit card provides this coverage, then you can confidently say no and save money without missing security.
Price protection. Price fluctuations are common around the holidays as retailers compete for your dollar. The disappointment is that a price may be right after you buy the gift. If the price of the item decreases immediately after your purchase, a credit card with price protection may reimburse you. This benefit is quite rare but valuable.
Traveling Allowances. If you are not staying at home, the benefits of a travel credit card can make the journey of the holiday easier. Travel cards can come with benefits such as free check bags, access to airport lounges, hotel room upgrades and travel insurance policies.
How to choose and use a holiday credit card
Any credit card you choose offers year-round value, but if you are getting a holiday credit card, you will want to keep track of your holiday expenses.
When you choose a credit card for holiday expenses, evaluate your shopping plans. If you shop mostly online, for example, a card from a major online retailer may have the net benefit of post-holiday rewards. If flexibility is important, a flat-rate cash back card may be a ticket.
You might also want to think about what kind of shopkeeper you are in choosing the right holiday credit card. Comparison shoppers should look for a card with price protection, which may concern you to shop now and get a refund for the price difference later.
Of course, the type of credit card you use is less than the cases you use. Make plans to pay for your holiday shopping before you leap, and before you start shopping.
After all, earning a mountain of rewards during the holidays is not helpful if those rewards come with a mountain of debt.