Holiday Debt Remains A Concern But How Are Consumers Planning On Handling Holiday Expenses?

Holiday sales are the high point for retailers and, despite economic troubles and employment trials which are still plaguing many consumers, there are positive reports which suggest that the forecast for the 2010 holiday retail season shows signs of growth, as many feel sales will be higher than last year.

While the holiday sales for this year are not predicted to be anything extravagant, retailers have stated they will be happy to see small increases, rather than the dismal sales for the years which followed the recession. There are obviously still consumers who may be unable to afford an expensive holiday gift buying operation this year, but retailers are planning to offer deals in many areas so that even cash-strapped buyers may still be able to find products they can afford.

Also, numerous articles are being published on how to beat holiday debt, which is a typical problem for many consumers after they have gone on their spending spree. It’s not uncommon for consumers to use credit cards to make all of their holiday purchases, but with many who are unemployed or underemployed this may simply be a bad idea or impossible for some. There is concern that consumers may turn to credit in order to purchase items for the holidays, but could be unable to pay these debts in the months to come if the job sector does not see improvements in the early months of 2011.

Yet, consumers who are still planning to do a good deal of Christmas shopping are reportedly either using cash, so that they stay within their means, forming a strict budget so that excessive costs don’t get out of control, and obviously consumers are set to take advantage of various Black Friday deals which, again, are being offered by countless retail stores in the hopes of drawing in more business this year.

Retailers are said to be optimistic about this holiday season as certain companies have hired more seasonal workers than in previous years, which again followed the recession, so it’s hoped that more Americans have found themselves in a financial position to begin putting cash into the economy once more. Claims that access to credit has been tight and consumers have either been attempting to rein in debt or are simply being more cautious with their spending have some believing that the increase in holiday sales, if one does occur, may be minimal.

However, only time will tell whether consumers are at a point where they are either able or comfortable with spending as the holiday season has yet to truly begin for many but rather will start to pick up in the coming weeks.