Card briefs: ABA: Cardholders Underestimate Spending

WASHINGTON - About three out of every four U.S. consumers with credit cards plan to put less than $400 on them during the holidays, an American Bankers Association survey found.

The telephone survey of 1,000 consumers, carried out by the ABA and Market Facts Inc. of Chicago, also indicated that only 22% plan to charge more than $500 to their cards.

But the ABA cited other statistics to argue that some consumers are underestimating their total spending.

A separate study by the International Association for Financial Planning suggested that many consumers who say they want to keep their credit card bills low still face lingering holiday charges from last year.

The Wirthlin Group, a Washington, D.C.-based research firm, found that 94% of 500 consumers surveyed planned to pay off all debt before the end of 1996, and 75% planned to do so by the end of March.

However, 27% of those questioned admitted they still hadn't completely paid off holiday debt incurred in 1994.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER