Credit Card Review Blog

Cutting Back Nationally

The term “cutting back” is becoming more and more common these days. Even Americans who still have jobs are finding themselves cutting back. People who have not yet bit affected by the recession are scrimping and saving instead of spending.

Americans who have jobs have reported cutting their holiday budgets by nearly 75 percent. This holiday season will be more about spending time with family and friends than going to the mall. Christi Harris, an American who has a very stable job, recently said, “We’re really just trying to take a deep breath. It feels like the country is reeling at this point.”

Many Americans have lost either their jobs or their retirement savings. Others have been negatively affected by the collapse of the housing market. However, other Americans have decided to cut back their spending, in spite of being secure financially.

There is a nationwide worry about what the future will hold. No one is wanting to accumulate extra debt, especially in a new era of tighter credit. Some Americans “say the recession has served as a wake-up call that spending habits have gotten out of control or say it just doesn’t seem right to spend lavishly when others are facing tough times.”

Laura Bush, the nation’s First lady said, “This year, we’re going to be very, very careful at Christmas. I suspect that a lot of other American families will be the same. The first lady spoke about reusing Christmas ornaments and truly focusing on family.

Marshal Cohen of the NPD Group shares his insight, “There is so little new product, there is so little availability of credit and there is so little desire to go out and try to show the world-you know, that keeping up with the Joneses, that’s over.”

For the most part, American families say that materialism around the holidays was getting way out of hand. American households who are doing relatively well, financially, will take this opportunity to teach their children the importance of giving.

Kim Hobin, a mother of four boys, said, “It just seems like a lot of people are suffering, and frankly we’re not, and I just want my children to realize that to be in this position is a blessing, so we need to share.”

Yes, the plan for many Americans this holiday season is to share and to save. Sharing with those who are less fortunate will really bring about the true meaning of the holiday season. Saving for the future will continue to add a buffer for any situation that might arise in the future.

What are your plans for the holidays this year?