Inflation isn’t just weighing on voters’ minds as they head to the polls. It’s likely to affect how Americans spend this holiday season.
A new survey from the credit rating agency Experian finds that 68% of consumers believe inflation will affect their holiday shopping, with more than half (56%) saying they feel stressed about their finances.
One third of shoppers say their stress is because it’s difficult to stay within their budget; 29% say they don’t want to add to their debt.
Almost nine in ten consumers say they’re tempted to spend more than they should, most of them (55%) by holiday deals and sales. Of consumers who overspend, most do so on gifts for others.
A slim majority of shoppers (51%) plan to pay for holiday gifts in cash; 46% say they plan to use a major credit card.
Fifteen percent of consumers plan to open a new credit card to shop for the holidays this year — up from 11% in 2023.
Paying off debt is the No. 1 step consumers plan to take to improve their finances before the new year, with 43% saying that paying off debt is their top financial improvement step, followed by not spending too much over the holidays (38%) and creating a budget for 2025 (36%).