However, a recent survey suggests that one area where consumers aren’t significantly cutting back is charitable donations.
According to the American Red Cross, 29 percent of those surveyed are cutting back on holiday gift purchases this year, while other cutbacks will come in areas like parties, travel and decorations. In contrast, 20 percent planned to reduce their charitable contributions while 17 percent said they plan to spend more.
The survey found that 23 percent of consumers had their salary or hours reduced over the past year, while 14 percent reported being laid off and 41 percent said they had lost money in the stock market. Out of the group, 67 percent said that current economic conditions make it more important to make a donation to charity.
Part of the trend may be due to the poor economy itself, which has resulted in greater media attention on how local charities are receiving more inquiries than ever and on how their resources have become increasingly strained.
While people are planning to save money this holiday season and avoid going deeper into debt, some of them may not be fully aware how to go about doing so.
With that in mind the Consumer Credit Counseling Service of Greater Atlanta offered some shopping tips that include making a list and sticking to it, leaving credit cards at home, and remembering that many online retailers tend to offer bargains on “Cyber Monday,” the Monday after Thanksgiving.
U.S. consumers have lowered their combined credit card debt by billions of dollars so far this year. Whether that trend can continue through the holiday season will be an important test of how strong their newfound spending discipline actually is.
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