As the holiday season approaches, consumer spending is on the rise, but so is the consideration of holiday debt among American households. According to CivicScience data, 14% of holiday shoppers plan to take on debt this year, a figure consistent with last year and slightly up from 2022. This debt influences shopping behaviors significantly; those willing to incur debt are more likely to purchase gift cards, start shopping early, shop online, and spend more compared to those who are not. Notably, 53% of those taking on debt intend to spend more this holiday season, while only 21% of non-debt shoppers feel the same. The article also highlights the role of Buy Now, Pay Later (BNPL) services, with a quarter of holiday shoppers having used them, although there is a slight decline in those intending to use these services this year. Overall, the data suggests a shift in spending habits, with more consumers opting for debit cards over credit cards this holiday season.
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