Fred Harteis Business News - Bah-humbug! say some holiday shoppers

Fred Harteis Business News - Almost a third of Americans plan to spend less on the holidays this year, mainly because they need to use their money for daily expenses, according to a survey released Tuesday.

The Consumer Federation of America and the Credit Union National Association found 32 percent of shoppers want to spend less than they did during the 2005 holidays. About half of the survey's roughly 1,000 respondents said they would like to spend about the same. Only 15 percent intended to spend more.

Rising energy costs are forcing many to deck the halls more sparsely this year, the report found, but general household expenses and tight family finances are also dragging down holiday budgets. More than 25 percent in the survey said the prices of gifts were simply too high.

But shoppers do not always follow through on their spending plans, said CUNA's chief economist Bill Hampel.

"Our experience with this survey is consumers tend to say they will spend less than they actually do, and our overall survey findings are slightly weaker than last year," he said in a statement. "This suggests many households will feel financially 'hung over' in a couple of months unless they do something about it now."

Those trying to cut back on stocking stuffers tend to be young or struggling financially. More than a quarter of respondents with incomes under $25,000 said they want to spend "much less" than last year.

"Despite the let-up in gas prices, young and less affluent Americans appear to be under greater financial stress this year than last," CFA Executive Director Stephen Brobeck said in a statement.

The share of those concerned about covering their credit card debts after the holidays swelled to 33 percent from 25 percent in last year's survey, and more than half of those aged 18 to 24 worry about being yoked by bills.

Credit card giant MasterCard Worldwide released a report Monday that found the average American intends to shell out nearly $700 this winter on festivities such as Christmas, with almost $300 of that sum spent online for gifts.

Most people prefer using debit cards over credit to buy gifts, MasterCard found, with three out of four consumers saying debit cards, which withdraw money directly from a bank account, encouraged them to stay within their budget.

Source: Cnn.com

About Fred Harteis: Fred Harteis leads Harteis International.  Fred Harteis has a background in agriculture and has created many successful business ventures.