With the holiday season in full swing, it can be hard to resist the temptation of endless shopping. Ted Rossman, Senior Industry Analyst, Bankrate, joined TheStreet to discuss how consumers can avoid overspending on their credit cards.
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Full Video Transcript Below:
CONWAY GITTENS: Black Friday is right around the corner and we're talking about retail credit cards. I'm wondering what kind of sense or what kind of tips do you have for consumers not to overspend on those credit cards?
TED ROSSMAN: We're seeing a frugal lean to the holiday shopping season, which makes sense given all we've said about inflation and high interest rates. Most forecasts I see are for something like a 2% or 3% gain over last year's holiday sales. So it is a gain. I mean, these numbers could easily be negative, but it is likely to be a gain more or less in line with inflation. We found that only 1 in 4 holiday shoppers plans to spend more than last year. A third plan to spend less. Everybody else about the same. Now, there's that perception versus reality thing again. I mean, it is possible that the overall average gets pulled up by higher spenders or also even if you think you're spending about the same inflation might mean that you're spending a bit more.
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A great savings strategy is to stack discounts. So the store promotions are going to be abundant this year. They've already started. Retailers are in a discounting mood. They're meeting the moment consumers are frugal, retailers are delivering with discounts and they started way back in early October. But don't stop there, so use the store promo, combine it with the rewards credit card that you hopefully pay in full before interest hits. Maybe you also go through an online shopping portal, something like Rakuten or shop through Chase that gives you bonus points and you can combine that with these other strategies. One other good option are card linked offers. Those digital coupons like Amex Offers, Chase offers my Wells Fargo deals, things like that. Those are some good coupons that can also be combined with other savings methods.
