TRENTON, NJ — As the holiday season approaches, New Jersey residents face financial challenges amid rising inflation, prompting changes in traditional gift-giving practices. A survey from the personal finance website WalletHub released today provides insights into the economic pressures that may lead to a subdued holiday spirit.
The report reveals that over one-third of Americans plan to skip gift exchanges this year due to the economic strain caused by inflation. Additionally, nearly one in four Americans still carry debt from the last holiday season, which may influence their spending decisions.
Approximately 20% of consumers are considering applying for new credit cards to manage holiday expenses, offering better rewards and introductory rates. Wells Fargo Active Cash Card tops WalletHub’s list for holiday shopping due to its 2% cash rewards on purchases and favorable terms, including 15 months with a 0% introductory APR and no annual fees.
Charitable giving is another aspect taking a hit, with nearly 50% of respondents indicating that the current economic situation will impact their donations. This comes alongside a reduction in holiday spending, with 28% of people planning to spend less than what they did last year.
The influence of social media on purchasing decisions is also highlighted, as 23% of Americans expect to make holiday purchases inspired by social media platforms.
WalletHub’s findings underscore the waning availability of credit card price protection, a benefit that could refund the difference if the price of a recently purchased item drops. While less common now, credit card purchase protection remains available, offering to repair or replace recently bought items that get damaged or stolen.
As New Jersey residents navigate these financial challenges, the demand for strategic spending is more pressing than ever. WalletHub offers expert advice and is available for further interviews to assist consumers in planning a financially sound holiday season.