Ashley Thompson
Published: November 26, 2008
Will you be spending less on gifts this holiday season? If so, you won’t be alone.
A recent survey by The Consumer Federation and the National Credit Union Association reveals that about 32 percent of Americans will be spending less and nearly 50 percent will spend about the same, a higher percentage than in years past.
Rising energy costs and mounting debt due to the current economic crisis are to blame for the lackluster spending, experts say.
Melissa Plotner, a Pensacola Junior College student, said she “won’t be buying as many gifts this year for (my) family.”
Abigail Avery has employed another strategy to deal with the economic slowdown: trading in her truck for one with better gas mileage.
In addition to buying fewer gifts, the amount spent on each gift is decreasing, according to The Consumer Federation.
Even those who say that they won’t be curbing their holiday spending are feeling the crunch elsewhere. Some are having a harder time finding a job, while others are just struggling to get by. More and more Americans are going even further into debt just to pay household expenses, The Consumer Federation says.
The government’s stimulus plan giving families up to $1,200 was designed to help boost the economy by encouraging spending but has largely failed to make a significant impact. Many Americans are paying off debts with their checks, or simply putting them in savings.
“Their great concern about making consumer debt payments, and their growing interest in paying down these debts, help explain why more Americans plan to spend less this holiday season than last year.” Consumer Federation Director Stephen Brobeck said.
Women, young adults and those with low incomes have the largest debt. Students, who statistically fall into both the young adult and lower-income brackets, say they will spend “much less” than last year on gifts and more on paying down their debts.
PJC student Nakia Blue said she will be “saving money to have money for school so (she) doesn’t need to borrow for student loans.”