November 2, 2009
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News: CC Customers Optimistic
A new study released by Reuters and conducted by the United Services Automobile Association (USAA) indicates that Americans are optimistic toward this year's holiday season. USAA is a Fortune 500 financial services company offering banking, investing, and insurance to people and families that serve, or served, in the United States military. The survey also confirmed that many of the respondents believed that they have done a better job of managing credit card debt. Having an optimistic view on holiday shopping could indicate that credit card customers have become acclimated to other forms of payment. We could also speculate that many credit card users have fined tuned the budget and trimmed down the shopping list which would also be a contributing factor to the optimistic view.
According to the UASS study, 55 percent of the respondents planned to leave their credit cards at home while shopping and stick to cash or debit. Furthermore, 74 percent of those respondents who expect to use their credit cards plan on paying the balances off in full to avoid paying any interest. Survey respondents have also done a better job at budgeting for the holiday shopping experience. While 64 percent of them said they have already created a shopping budget and another 10 percent say they will be creating one.
While many of the respondents were optimistic, a smaller group of credit card customers had some concerns and reservations. Approximately 38 percent of the respondents expressed a concern of survival while 15 percent said they would be depending more on their card than in previous years. One out of five respondents said they were not sure how they would be paying and even more have no card and has not saved any cash for holiday spending. In conclusion, the UASS reports that it's not too late to begin saving a little extra for holiday shopping.