33% of Shoppers are Increasing Their Debt This Holiday Season

While holiday shoppers are showing signs of decreased spending and more control of unhealthy spending habits, 33% of shoppers are still planning to increase their debt this holiday season.  According to a Accenture’s annual holiday consumer spending report, survey results show that consumer expect to spend an average of $582 on their holiday shopping lists and 23 percent plan to spend more than $750.  Over half (52%) expect to increase their spending from last year by $250 or more.

The good news is that according to the survey, most shoppers are better prepared for their spending this year than they were last year, with 51% saying they will pay cash for their purchases.  However, there is still a large number of consumers who state that they will put their purchases on a major credit card—33%, in fact.  This is still one-third of consumers who plan to add to their consumer debt this holiday season. 

According to Chris Donnelly, managing director of Accenture’s Retail practice, “The research illustrates a shift in U.S. consumers’ approach to their holiday spending.  Many consumers are still struggling to balance their household budgets, at the same time that pay raises and bonuses remain in short supply, and they are realizing that this is not a short-term phenomenon.  Consumers will remain resistant to the impulse purchase, and retailers will have to work harder to secure that extra spend by having a unique product, service or experience, and being clear on the value to the customer.”

Some of the ways consumers are coping with having less money to spend and attempting to spend money more wisely include an increased amount of online shopping, where items can often be found at better prices.  Shoppers are also taking more advantage of discounts and promotions offered by retailers in an attempt to lower their overall spending during the holiday shopping season.