• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

TrueCredit.com Survey Reveals U.S. Consumers are Trimming Holiday Spending

Posted on: Thursday, 4 December 2008, 06:00 CST

CHICAGO, Dec. 4 /PRNewswire/ -- With a lagging economy and unemployment on the rise, savvy shoppers will be keeping a close eye on their holiday spending this season. Despite a boost on Black Friday, National Retail Federation is still forecasting U.S. retail industry sales will only increase 2.2 percent in 2008 -- the least amount of growth in six years. So it's not surprising that a majority of consumers (54 percent) say they plan to spend less this holiday season than they did last year, according to a new survey commissioned by TrueCredit.com and conducted by Zogby International.

Most respondents (45 percent) say they are controlling their holiday budget by spending less per person this season, 32 percent will buy items on sale and two in 10 people will set and adhere to an overall spending limit. The survey also found that an overwhelming majority (73 percent) will use cash and savings to finance their holiday purchases, while 18 percent plan to use their credit cards.

"While clipping coupons and bargain hunting are effective ways to pinch pennies, now more than ever, consumers need to plan for long-term savings," said Lucy Duni, vice president of consumer education at TrueCredit.com by TransUnion. "During the holidays, it's important for consumers to take a holistic approach to their spending, to ensure they don't rack up debt that will impact their credit long after the holidays are over."

The experts at TrueCredit.com compiled a list of helpful tips and insights to help consumers navigate the holiday shopping landscape:

Wallet Makeover: Surprisingly, the survey found 55 percent of people say they do *not* feel they're more at risk of ID theft during the holiday shopping season. As more shoppers hit the stores, so do identity thieves, so it's important for consumers to protect themselves. To reduce your risk, do not carry extra credit cards, your Social Security card, birth certificate or passport with you unless needed.

Check it Twice: Before you shop this holiday season, check your credit report to get an up-to-date view on your balances and to ensure everything is accurate. After the holidays, check your report again to make sure there isn't any fraudulent activity on your report.

Trim the Tree: Talk to your friends and family about scaling back on extravagant gifts to ensure the holiday season is more economical for everyone. Try making a list of people you plan to buy gifts for and set a spending limit for each one.

Buyer Beware: According to the survey, more than half of Americans have between one and five retail credit cards, and 2 percent say they have seven or more! Avoid the temptation to sign up for every credit card you are offered while shopping. While the promotion may be enticing, it can make it easier for you to rack up more debt.

Go Green: Go to the ATM and take out the amount of cash you plan to use for the day. Put it in your wallet. When your wallet is empty, stop shopping.

Eyes on the Prize: Maintain good spending habits and a healthy credit report during the holidays and throughout the year. Budgeting ahead for holiday and other spending extravaganzas can help limit financial stress while also keeping your debt accumulation to a minimum.

To see the full results of TrueCredit.com's survey and learn more about credit management, log onto http://www.gotruecredit.com and visit the learning center.

About the Survey

Zogby International was commissioned by TrueCredit.com to conduct an online survey of 2,520 adults in the U.S. from 11/25/08 to 12/1/08. A sampling of Zogby International's online panel, which is representative of the adult population of the U.S., was invited to participate. Slight weights were added to region, party, age, race, religion, and gender to more accurately reflect the population. The margin of error is +/- 2.0 percentage points. Margins of error are higher in sub-groups.

About TrueCredit.com

Since 1999, TrueCredit.com has helped millions of consumers manage their own credit health. Through a suite of educational materials, free monthly newsletters and easy-to-use products, the company helps consumers understand personal credit management and empowers them to achieve greater financial well-being. TrueCredit.com's online products include credit reports, credit and insurance scores, credit monitoring, debt management tools and identity theft insurance services. TrueCredit.com is the direct-to-consumer arm of Chicago-based TransUnion Interactive, a subsidiary of TransUnion, a global leader in credit and information management. Manage your credit. Manage your life.(SM) http://www.gotruecredit.com

SOURCE TrueCredit.com

Source: PR Newswire

More News in this Category