Consumers Set Holiday Budgets, But Most Overspend

Americans expect to spend 8% less during the holiday season compared with last year, according to a survey by Champion Mortgage, Parsippany, NJ. Although consumers believe in setting holiday shopping limits, more than 43% will still spend more than they plan, according to a recent survey on holiday spending.

The survey, conducted by International Communications Research, Media, PA, noted that while setting a budget does not guarantee that people will abide by it, the majority of consumers who completely avoid making holiday budgets spend 36% more than people who do, an average of $1,105. The second biggest spenders during the upcoming holiday season, at $989, are expected to be those people who say they set a budget but generally don’t stick to it. The group that said they would spend the least money during the holiday season ($810 on average) were those who tend to stick to their budgets.

According to the survey, people vastly overestimate their ability to pay off debts accumulated during the holiday season. For example, 90% of the people surveyed expect to pay off their holiday credit card debt within six months. However, the survey shows that last year only 45% of people paid off their holiday credit card within that time frame.

The survey showed 35% of people anticipate feeling “some regret” about their holiday spending.