A post-Christmas spending survey conducted by Consumer Reports revealed that U.S. consumers spent an average of $811 on gifts during the 2009 season, which was $112 “over budget” based on the results of its pre-Christmas poll. This first survey found that on average, shoppers planned to spend $699 per household on gifts. About one-fifth of respondents ended up spending $1,000 or more on gifts.

Consumer Reports found that overall, 81 percent of consumers purchased gifts, although this figure rose to 94 percent when households earning over $100,000 were factored in. Twenty-six percent of households earning less than $50,000 did not purchase Christmas gifts.

“Looking back on this past holiday shopping season, it was clear that some were willing to open up their wallets,” said Ed Farrell, the director of market research for Consumer Reports’ National Research Center. “Many shoppers drove up their holiday spending budget at the last minute, which could have been a result of sales and discounts retailers were offering.”

Forty-seven percent of shoppers used credit cards to pay for all or some of their holiday gift purchases. This group spent more than non-credit card users, averaging $896. Consumer Reports concluded that the “damage on credit cards” was much higher than anticipated. Based on the company’s pre-Christmas poll, shoppers had intended to charge an average of $636 in gifts, but their actual charges averaged $816 per household, which was 28 percent higher than the original average gift budget. One in five shoppers charged $1,000 or more on major credit cards, while households earning over $100,000 charged an average of $1,570.

More than one-quarter of Consumer Report’s respondents paid off their holiday credit card debt by the end of December, while 40 percent planned to settle their balance by the end of January. One in five shoppers will not square their debt until March or later and 9 percent will not pay off their charges until June or later.

Source: Rapaport News