Credit Counselors of America - Americans Won't Spend Extra Money for Holidays this Summer
Credit Counselors of America (now called Myvesta) are a non-profit consumer education organization. They are committed to helping people manage their money more responsibly. To do this they provide consumers with a number of resources to help them learn effective financial management.
In a recent survey Credit Counselors of America
found that most American consumers are spending about the same amount of money on their vacation as they did in 2004. The annual Summer Vacation Survey revealed that on average Americans intend to spend about $2,249 on their holiday. This is slightly less than 2004 figures. The survey was conducted June 3-5 in a random telephone survey of 1,000 adult Americans, says Myvesta.
Despite the fact that consumers are a little more confident about the economy this hasn't made them willing to spend more on their holidays than usual. For most Americans finances are still a worrying part of their reality says Credit counselors of America. Many consumers are still wary of the future economy and stagnant wage increases compel them to keep costs down.
Of those who are going on holiday about 75.1 percent will pay for it using a credit card. 30.3 percent of these holidaymakers will take three or more months to pay off the balance. Credit Counselors of America say that using a credit card is a safe, easy option for paying holiday expenses but consumers should keep an eye on the card balance and not spend money they can't afford.
Holidaymakers from the Midwest will spend an average of $2,510 on their summer holidays while residents from the northeast will cough up about $2,282. Vacationers in the West plan to spend $2,141. Southerners will shell out 2,139 on vacation expenses, according to Credit Counselors of America.
So according to the Credit Counselors of America survey Americans are still cautious about their financial futures and this could be a good thing. In a country where many people are in debt they can't afford to repay playing it safe financially may help to protect them from falling into the debt trap. While a holiday is a great experience for the whole family, those who can't really afford it are better off taking care of current debts before making any more.
