More holiday shoppers plan to pay with cash, debit cards this year

According to National Retail Federation’s 2009 Holiday Consumer Intentions and Actions survey, one-fourth (24.9%) of holiday shoppers will pay for gifts this year with cash, a 9.1 percent increase from last year’s 22.8 percent. In addition, 42.5 percent of shoppers plan to pay primarily with debit or check cards, a 2.5 percent increase from last year. The number of shoppers who will rely on credit cards is expected to fall 10.1 percent, with 28.3 percent of people using credit this year compared to 31.5 percent a year ago. Just four percent of holiday shoppers plan to pay for most gifts with personal checks.

“With many holiday shoppers focused on spending within their limits, it’s no surprise that fewer people will be relying on credit cards this year,” said Tracy Mullin, president and CEO of the National Retail Federation. “If the strong promotions and sales we’ve seen the last few weeks are any indication of what retailers are planning, shopping on a budget this year will not be a problem.”

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