AMERICANS TRYING TO CUT BACK ON HOLIDAY CREDIT

December 10, 2001

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Sixty-six percent of Americans plan to use either less credit than a year ago or no credit as they buy holiday gifts, according to a Cambridge Consumer Credit Index release. In a nationwide poll of 1,000 adults done by ICR/International Communications in the past week, 30 percent of Americans plan to use less credit than they did a year ago and 36 percent will not use any credit card debt at all when buying gifts. In contrast, 31 percent plan to use about the same amount of credit card debt as last year and only 4 percent expect to use more credit card debt.

The Index also asked consumers who are going to use credit cards for gifts whether or not they expect to pay these bills off when they arrive in January. Fully 55 percent expect to pay their credit card bills off in full next month, while 39 percent expect to carry a balance and pay interest for at least a month after January. Only 6 percent thought they would pay off some, but not all, of what they spend when the bills come in January.