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As the holiday season approaches, let’s take a look at holiday shopping statics. A NerdWallet survey reveals that a whopping 85% of Americans, approximately 222 million people, are gearing up to purchase gifts for their loved ones. The anticipated average spending per individual stands at $831. Altogether, it contributes to a staggering $184 billion in holiday gifts for the year.
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Debt Dilemmas from 2022:
The survey highlights a lingering concern from the previous year. 52% of Americans admitted to incurring credit card debt during the 2022 holiday season. Alarmingly, 31% of these individuals have yet to settle these balances. The average time taken to clear last year’s credit card debt was 1.9 months.
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How will you pay for the holiday shopping?
2023 holiday shoppers plan to use a variety of payment methods to cover gifts this holiday season. About two-thirds (66%) will use cash — which includes debit cards — and more than a quarter (28%) will use money from their savings to pay for gifts.
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Credit Card Dependency Persists:
This year, 74% of holiday shopping will be paid by shoppers with credit cards for their purchases, averaging a charge of $680. Notably, over a quarter of respondents express a willingness to go into more debt than usual, including 42% of parents with children under 18.
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Inflation’s Impact on Gift Giving & Holiday Shopping:
More than half of holiday shoppers (56%) cite inflation as a limiting factor, preventing them from buying as many gifts as they would like. Nevertheless, 39% feel pressured to exceed their comfort zones in spending, with 12% considering tapping into emergency savings for holiday gifts.
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Local Support and Generosity:
A noteworthy 27% of holiday shoppers pledge to support local businesses. Furthermore, 25% of respondents express a willingness to tip more generously during the season. Lastly, 20% allocate most of their charitable giving to the holidays.
