By Tatiana Bautzer
NEW YORK (Reuters) -U.S. consumers expect to rely more heavily on credit cards for shopping during the Thanksgiving holiday season, according to a survey by credit bureau TransUnion.
According to TransUnion’s U.S. Consumer Pulse study that surveyed 3,000 people in October, 42% of consumers intend to use credit cards to pay for shopping between Thanksgiving and Cyber Monday, up from 38% a year ago.
The majority of consumers, around 55%, are optimistic about their household finances over the next 12 months, although the percentage is down from 58% last year.
Inflation remains by far the top financial worry, with 86% of consumers concerned about the issue. A potential recession and high housing prices are also among consumers’ concerns.
“The higher-income consumers continue to be enthusiastic about spending”, said Charlie Wise, senior vice president and head of global research and consulting at TransUnion. “Lower-income clients are struggling with the higher cost of living these days. But we see delinquencies in credit cards and unsecured loans seem to be under control, mainly due to the low unemployment rate,” Wise added.
The wealthier consumers are expected to use credit cards more for shopping, mainly for convenience and rewards, the TransUnion executive said, while low-income consumers are relying more on credit for discretionary spending due to the rise in household expenses due to inflation and high housing costs.
(Reporting by Tatiana BautzerEditing by Rod Nickel)
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