NORTH PALM BEACH, Fla. (11/30/15)--When it comes to paying for holiday gifts this year, most consumers will pay with cash or debit, according to the latest Bankrate Money Pulse survey.
Seven in 10 Americans said they will use either cash (39%) or a debit card (31%) for most of their holiday purchases. Roughly 22% said they will put the bulk of their holiday spending on credit cards.
Americans with household incomes of less than $30,000 were most likely to say they will use cash for most purchases (53%), while 21% of those with household incomes greater than $75,000 said cash will be a first option.
"Paying with cash or debit means people definitely have changed their priorities. They're going to buy what they can afford and no more. That's very good," said Ronit Rogoszinski, wealth adviser at Arch Financial Group.
Consumers intend to spend slightly less during the 2015 holiday season than in 2014, according to the 16th annual holiday spending survey conducted by CUNA and the Consumer Federation of America. Holiday spending this year is likely to rise by 2.5% to 3% from the 2014 level, according to the survey.