Rewards credit cards and seasonal spendingOther headline findings from the report, published Nov. 14, include:
- Most (58 percent) of holders of rewards credit cards intend to maintain their 2012 holiday spending at 2011 levels -- although, as the saying goes, the road to hell is paved with good intentions.
- A significant amount -- given the slow economic recovery -- 14 percent say they plan to spend more during this season of good cheer than last.
- Just 18 percent report they are going to redeem rewards points for gifts during the period.
Redeeming rewards all year roundCapital One's press release suggests two possible reasons:
- Affluent consumers are nowadays tempted by sales and bargains throughout the year, so shopping patterns are changing. That means less emphasis on the traditional buying season.
- Less wealthy Americans have come to rely on their rewards credit cards' points and cash-back credits to subsidize their lifestyles. Twenty-three percent of women responding to the survey said they use their rewards to offset spending on essentials such as groceries and gas.
Black Friday -- and staying in the blackNone of this is likely to mean that shopping malls are going to be deserted on Black Friday. On the contrary, your bruised ribs and trodden toes may well be indistinguishably less sore than last year. But any reduction in the crowds may not be a bad thing for two reasons:
- Last month, The Wall Street Journal reported a Decide Inc. study that found that Black Friday is, for many types of item, far from the cheapest shopping day of the year. It's good for some, including high-end jewelery bargains, but many goods may get cheaper closer to Christmas.
- On Nov. 19, TransUnion, one of the big-three credit bureaus, revealed that both problem credit card debt (the rate of accounts 90 days or more past due) and card balances inched up during the third quarter of 2012.