Many U.S. shoppers will rely primarily on debit cards to purchase gifts for friends and family this holiday season, according to a new survey by TD Bank. The bank commissioned a poll of more than 1,000 consumers about their holiday spending habits. More than four in 10 respondents (42%) cited debit cards as their primary payment method. Credit cards were the second most popular payment method, with one in three (33%) citing it as their preferred option.
Seventy-six percent of respondents who use bank or store credit cards said they do so to earn rewards or cash back on their spending. Nearly two-thirds of respondents who use credit cards or personal loans for holiday spending expect to pay 100% of their outstanding balance in January 2023.
At the same time, many shoppers plan to be more careful about their holiday spending this year given concerns about inflation, with 57% of respondents planning to create a holiday-specific budget. Three in four respondents said the financial aspect of the holiday season makes them anxious, compared to 66% who said the same thing in a similar survey in 2021.