AUSTIN, Texas–More than half of all Americans said they plan to take out some sort of short-term loan to fund holiday spending this year, according to a new survey, that found many plan to turn to buy now, pay later (BNPL) offerings available to them.
The survey, conducted by DebtHammer.org, which said it was founded to help people escape the payday loan trap, polled 750 Americans from Oct. 27-Nov. 5 to study how COVID-19, fears of supply shortages and the overall economy are affecting spending plans compared to 2020.
Though more than 78% say they have some savings set aside for holiday spending, 58% said they expect to take out a payday loan or other short-term loan to pay for their holiday celebrations, and 66% expect to use a buy now, pay later plan like Afterpay, Klarna or Affirm to help spread out their expenses, DebtHammer.org reported.
Other Findings
Other findings include:
- More than 80% of those surveyed are worried that supply chain shortages may prevent them from finding the items they want.
- More than 30% plan to buy fewer items, 23% will give homemade gifts and 18% will gift items they already have on hand.
- More than 81% of Americans are worried about higher shipping costs and longer shipping times over the holiday season.
- More than 85% of those surveyed are making changes to their normal shopping routine, including 23% who plan to transport gifts themselves and 21% who will give fewer gifts to out-of-town friends and relatives.
- The lingering pandemic and anticipated supply shortages have consumers buying earlier, a trend that had already started last year. In 2020, consumers spent $5.1 billion just on Thanksgiving Day. More than 62% will have already done some shopping by the time Black Friday rolls around, and another 14% will start on that day, DebtHammer.org reported.
The full survey can be found here.