CHARLOTTE, N.C., Oct. 27, 2015 /PRNewswire/ --
LendingTree®, the nation's leading online loan marketplace,
recently conducted a survey among 1,080 American adults and found
that a quarter of Americans have struggled to pay off subsequent
debt from holiday shopping. With more than half of respondents
planning to forgo a budget this year, it's possible that some
consumers could be ringing in the new year with additional
debt.
After the 2014 holiday season, 41 percent of Americans had at
least some financial regrets related to holiday spending. Of
those with regrets, the most significant was shopping
procrastination (38.3% of regretful shoppers), followed by not
comparison shopping (27% of regretful shoppers), and overspending
by not sticking to a budget (26.4% of regretful shoppers). Roughly
25 percent of regretful shoppers, or 10.28 percent of the total
survey sample, admit to relying on credit cards or borrowed money
to fund their holiday shopping last season.
"Many shoppers get wrapped up in the holiday season and
overspend, leading to a debt load that becomes hard to manage with
high interest rates that rack up," says Andrea Woroch, consumer finance expert. "It's
important for consumers to determine their financial positions now
and establish a budget to avoid unnecessary financial struggles. My
LendingTree offers an instant credit score which is updated
monthly, and provides an overview of your financial accounts to
help you manage debt. Along with that, the platform's saving
algorithm notifies you when a savings opportunity is identified,
like a lower interest rate credit card or an available debt
consolidation loan."
Although 64 percent state that they will spend $500 or less, about 1 in 4 (27.13%) of Americans
state they plan to spend anywhere between $251 and $500 on gifts this year and one in five
(21.39%) state they will spend between $501
and $1000 this year. More than half (52.5%) are planning to
buy gifts for fewer than seven people. However, work colleagues
shouldn't expect gifts this holiday season with only 25.6 percent
of Americans planning to buy gifts for co-workers.
Compared to holiday spending last year, 69 percent plan to spend
about the same amount on holiday gifts, 17 percent plan to spend
less than last year and only 8.2 percent plan to spend more this
year.
The reason why Americans may spend less this year is not fully
clear, but personal finances may play a role. A little over 1 in 5
Americans (20.84%) generally feel their bank accounts are at least
a little bit tight or feel they have to dig themselves out of a
hole after the holidays.
"While the economy is improving, many Americans are still in a
state of financial recovery regarding their finances," said
LendingTree CEO, Doug Lebda.
"Although we're seeing personal finance situations and consumer
confidence generally improving across the nation, many consumers
remain financially conservative, sensitive to the implications of
overspending and watchful of their wallets. This is especially true
amongst millennials."
Included in the survey were expectations of what items consumers
intended to spend more or less on this year compared to last. Every
category included in the survey saw a net expectation of less
spending, with the exception of gift cards, where marginally more
people intend to spend more. When split by age, data showed the
18-29 group intends to spend significantly more on clothes this
year compared to last, with 15.38 percent stating they will spend
more and only 9.23 percent stating they would spend less.
Customer Expectations
of Spending Compared to Last Year
|
|
|
More*
|
Same*
|
Less*
|
Net
Change
|
Clothing
|
11.57%
|
61.94%
|
12.96%
|
-1.39%
|
Footwear
|
5.00%
|
49.81%
|
22.04%
|
-17.04%
|
Jewelry and
fashion accessories
|
6.11%
|
51.39%
|
21.57%
|
-15.46%
|
Fragrances
|
4.07%
|
48.61%
|
24.63%
|
-20.56%
|
Books
|
11.20%
|
54.54%
|
15.09%
|
-3.89%
|
Movies (DVD,
Blu-Ray)
|
4.44%
|
49.91%
|
23.89%
|
-19.45%
|
Toys
|
12.69%
|
47.50%
|
24.35%
|
-11.66%
|
Videos games
and/or systems
|
5.09%
|
43.61%
|
28.70%
|
-23.61%
|
Music
|
3.98%
|
49.17%
|
22.96%
|
-18.98%
|
Food or
beverages
|
9.26%
|
58.06%
|
15.28%
|
-6.02%
|
Electronics
|
10.09%
|
50.74%
|
20.74%
|
-10.65%
|
Sports
equipment
|
4.54%
|
44.17%
|
26.02%
|
-21.48%
|
Gift
cards
|
13.24%
|
58.24%
|
12.69%
|
+0.55%
|
|
|
|
|
|
*More, Same, and Less
values do not total 100% as remaining respondents answered
Unsure.
|
To view the original release in LendingTree's Press Room, please
visit:
https://www.lendingtree.com/press-release/2015-shoppers-expecting-to-spend-less-this-holiday-season
Methodology
The 2015 LendingTree U.S. Holiday Shopping Survey was conducted
online within the United States by
SurveyMonkey on behalf of LendingTree between September 9 and September 14, 2015 among
a nationally representative sample of 1,080 Americans ages 18 and
up.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree
provides an online marketplace which connects consumers with
multiple lenders that compete for their business, as well as an
array of online tools and information to help consumers find the
best loan. Since inception, LendingTree has facilitated more than
55 million loan requests. LendingTree provides free monthly credit
scores through My LendingTree and access to its network
of over 350 lenders offering home loans, personal loans, credit
cards, student loans, personal loans, business loans, home equity
loans/lines of credit, auto loans and more. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information go
to www.lendingtree.com, dial 800-555-TREE, like
our Facebook page and/or follow us on
Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.Greuling@LendingTree.com
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SOURCE LendingTree