The overall amount of consumer debt in the U.S. has fallen steadily for nine months now, hitting $888.1 billion in the latest report from the Federal Reserve. A key test of that trend comes this month, when millions of people will be weighing how strictly to stick to their holiday shopping budgets and whether to break out their credit cards or use cash and debit cards as many have said they plan to do.
According to the annual Holiday Shopping Survey from Discover, consumers are planning to spend 15 percent less on shopping this year than they did during the 2008 season. The survey finds that the average shopper plans to spend $723, compared to $831 last year – when the economy was widely seen as being worse than it is today.
Broken down by gender, women plan to spend $742 on holiday gifts this year, while men said they would spend an average of $702.
The economy was said to be the primary factor for 48 percent of consumers who plan to spend less this season, although they also indicated that their holiday spirit remains intact and that they are less worried about their personal finances this year.
Personal finance experts often advise consumers who are trying to reduce debt to write up a holiday budget and stick to it. With that in mind, 63 percent in the Discover survey said that they plan to do so, which is down from the 73 percent who said they would in 2008.
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