A Credit-free Christmas?
Surveys have shown close to 60% of holiday shoppers plan to reduce their holiday spending this year. Many consumers are already at their limits with credit cards, which could mean a credit-free Christmas shopping excursion for families who are used to putting their holiday purchases on credit cards.
Many stores are offering alternatives to paying with cash - knowing that their consumers are cash-strapped and knowing their sales are likely to be much lower this holiday season than they’d like.
Cash: Some stores offer discounts if you pay with cash! When you’re at the checkout line and you’re asked “Cash or credit?” ask if there is any incentive to paying for cash before you whip out your wallet. In order to combat rising merchant fees, a number of retailers are offering discounts to people who hand over the green.
Store Credit Cards: Don’t be surprised if you’re hassled a bit more than usual about opening store credit cards. Retailers are improving their incentives (increasing today’s purchase discount from 10% to 15% or even 25% if you open a store credit card, for example) and some will give you a coupon for money off your next purchase. Just keep in mind that store credit cards typically have the highest interest rates of all credit cards and if you don’t pay your balance off the moment you recieve your statement, you’ll pay far more in interest and fees than you’ll get for using the incentive.
