Change in attitude torwards spending and credit card debt…
A recent press release by Experian, a leading global information services company, reports positive intentions by a majority of consumers to pay down debt in the coming year. According to the survey, the recession has had a significant impact on consumer behavior and attitudes regarding holiday spending and credit card debt.
Although 21% of consumers expect to carry holiday credit card debt after January 2010, down from 26% in January 2009, the recession has inspired 55% to look for ways to avoid adding additional debt. The strategies they plan to implement include sticking to a budget, making an effort to save on purchases and cutting back. Nearly a quarter of survey respondents, who will carry holiday credit card debt, are planning to pay it off in one or two months; in comparison, 18% paid off their holiday debt in two months after the 2008 holiday season.
The reasons cited for the increased concern and awareness of credit card debt are tied to the recession. Sixty-nine percent cited higher credit card interest rates as the reason for the focused effort to pay their debt down; 38% cited the recent focus of the potential damaging effects of credit card debt; 37% cited credit score concerns. While 37% were concerned about job security and the ability to pay off their debt in the future.
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