A new Debt.com survey reveals that shoppers have fascinating hacks for defeating inflation.
It’s one month until Black Friday, which is traditionally the biggest holiday shopping day in America. A new Debt.com survey shows that people won’t spend less this holiday season, but they will spend differently. Holiday shoppers are keenly aware of inflation and supply-chain issues. Yet they refuse to let it spoil their holiday cheer.
Nearly two-thirds of respondents (64 percent) said they’re shopping earlier this year than last. A third started this month, but 15 percent started over the summer when it became obvious inflation wasn’t going to fade away anytime soon.
While 14 percent cited inflation as their reason for shopping early, “concerns about supply” and “avoiding price markups” represented nearly 45 percent of the concerns.
“That makes perfect sense,” says Debt.com president Don Silvestri. “Americans have long been willing to go into debt to have a happy holiday. What they fear most is not getting their hands on that perfect gift, either online or in the store. For most of the year, inflation is the biggest worry. Leading up to the holidays, fear of rising prices will be replaced by fear of sinking availability.”
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More than half (55 percent) of holiday shoppers expect to spend more this season because of inflation – but not a lot more. For example, last year 15.6 percent of these same shoppers planned to spend between $200 and $300 on holiday shopping. This year, it’s just over 18.5 percent. The higher you go, the closer it gets. Last year, 9.9 percent expected to spend more than $1,000. this year, it’s 10.4 percent.
Instead of watching every penny, shoppers are adopting new tactics. Yes, 31 percent said they planned to spend less, but even more (34 percent) are going to try this: “I’ll spend the same amount but on fewer gifts.”
“That also makes sense,” Silvestri says. “Tough economic times sharpen our minds as well as our holiday budget. During the holidays, we ask ourselves if we really need to buy gifts for everyone – distant relatives and occasional coworkers, for example. Instead, we’ll show how much we appreciate a small selective group.”
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Another 18 percent will spend more to buy quality gifts. “If you’re shopping early for quality items, you’re predicting that inflation and supply-chain issues will drive those prices even higher later,” he says.
Of course, going into debt to enjoy the holidays only ensures post-holiday misery. Fully half of respondents will use a credit card to cover their holiday shopping, and while the most common amount of debt is less than $100 (for 45 percent of respondents), just over 4 percent expect to be over $500 in debt, and almost 5 percent expect to owe $1,000 on credit cards.
