CreditShout.com highlights the monthly Discover spending survey that points to a second holiday season of weak sales. There was an increase from October to November amongst those who think that economic conditions are “poor” and “getting worse.” Critically, those who anticipate spending less this year than last year inched up from an already high 62.7% in October to 64.7% in November.
One hypothesis on consumer sentiment running contrary to the recent leaps in the stock market is the unemployment rate, which continues to be high. Employment and household cash flow are strongly related: income from work represents the bulk of household total income, and tight credit means spending must be restrained. For an individual or family still dealing with debt, this is the time to again focus on meaningful holiday experiences that do not cost substantial money out of pocket. In the next few days, stay tuned for a list of frugal yet fun options for the holiday season.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: consumer holiday caution, consumer holiday spending, holiday frugality, Holiday Spending
