September 29, 2009

• Consumers Have Learned A Tuff Lesson, Pt.1
    Americans are monitoring their wallets

  Consumer Affairs released the latest Consumer Report survey covering consumer and credit card spending habits during the recession. According to the survey Americans took the recession very seriously and reduced spending significantly. Approximately 71 percent of the respondents reported only buying what they absolutely needed. Reduced credit card expenses included going out to dinner less often, spending less on vacations, and shopping for groceries more wisely. The Consumer Report poll also indicates that Americans are not overly anxious to beef up credit card spending once the recession is officially over and relief is evident. When asked what they would like to splurge on at that time, a mere 17 percent said a vacation and 15% said nothing.

  The most significant indication of a lesson well learned was results of the question "If you were to win $10,000 tax free and could use for only one purpose, what would you do?" Over 65 percent of the respondents said they would pay down credit card debt, put it in savings, or invest it. Results of the poll also indicate that Americans have taken heed from the recession. A large majority said they will continue to monitor credit card spending even after the economy has stabilized. There were 79 percent of the responds who said they would continue to spend less; 61 percent they would continue to reduce dinning out; and 55 percent said they will continue to monitor grocery shopping.

  As consumers continue to monitor spending and have made the switch from credit to debit, they are looking for assistance in reducing their current credit card debt. Reports indicate that the nation's overall card debt is over $917 billion. Many alternatives have been suggested on how to reduce this level of debt; however, most solutions can be harmful to an individual's credit history and score. The Consumer Report has some viable suggestions to help consumers manage debt and see results without resorting to damaging strategies.

  Continued...
  Back to Articles Main Page