Four out of five U.S. consumers have had their spending habits affected by inflation, with more than half turning to discounts and promotions and seeking lower-priced options, according to a new survey by TD Bank. Groceries were the leading expense for 51% of respondents, with another 13% spending primarily on gas. Only 5% of consumers are spending the most on discretionary expenses like vacations, electronics and high-end retail items. Thirty-nine percent of respondents have also cut their discretionary budget in response to rising costs of living, and 27% have had to dip into their savings to keep up.
The survey also found that consumers are looking for low and no-interest solutions for their credit cards as interest rates rise. Eighty-nine percent of respondents said they would be interested in a credit card with no interest, and 42% ranked low or no fees as the feature they most valued in their card benefits, with cash back coming in second at 34%. Forty-eight percent selected no interest as the credit card feature they were most interested in, with customizable rewards coming in second at 25% and increased payment flexibility coming in third at 17%.
Forty-two percent of respondents had experienced a situation in the past that negatively affected their credit. The leading cause was incurring credit card debt (44%), which ranked higher than losing a job or source of income (32%) as a negative credit experience.
