Survey: More than a third frequently participate in retail therapy

When you’re shopping to tackle a pandemic funk, you are not alone. According to a US news poll …

When you’re shopping to tackle a pandemic funk, you are not alone. According to a US news poll, some of the people have done a lot of retail therapy.

In a post-pandemic American spending survey conducted in late May and early June 2021, nearly 34% of those who say they practice retail therapy do so frequently.

A little more than two-thirds of respondents say they do receive retail therapy but don’t do it often. I’m for self-medication every now and then, but it becomes a big problem if you don’t keep track of your expenses.

The majority of donors have no budget

Credit card balances fell in 2021. This is consistent with the combination of limited spending options during the pandemic and debt repayment, according to the Federal Reserve Bank of New York.

But as credit card issuers begin to flood the market with new credit card offerings, balances are expected to increase. Given the need to catch up, respondents were asked which post-pandemic activities they are most looking forward to. About 27% have no special plans, but among those who do express a preference, they plan to get involved in the following activities:

– About 40% are most interested in traveling again.

– More than 23% say they want to go to a restaurant or bar.

– Around 16% would like to go to a concert or other public event.

– Almost 6% want to go shopping.

– About 4% plan to go to a wedding or a private event.

When you have the money, it’s okay to get involved in activities that you missed out on. But nearly 51% say they don’t have a budget, which can lead to overspending and debt. Of those on a budget, only 49% say they stick to it.

[Read: Best Cash Back Credit Cards.]

Majority has no post-pandemic debt

About 67% of respondents say they have no post-pandemic debt, which is great news. However, this means that around a third of those surveyed still have to do with debt.

Of those trying to fight their post-pandemic debt, they use the following strategies:

– Almost 28% pay more than the minimum monthly payment required.

– Almost 21% use a credit transfer credit card with an introductory annual interest rate of 0%.

– Approximately 11% use the snowball method, which starts with prioritizing their credit card balances from smallest to highest. You pay out the cards in this order, starting with the smallest balance first.

– Approximately 8% use the avalanche method, which starts with prioritizing their credit card balances from the highest APR to the balance with the lowest APR. You pay out the cards in this order, starting with the highest APR.

– Less than 6% say they use a debt consolidation loan.

Some say money habits improved during the pandemic

Although just over half say they don’t see a money-related silver lining for the pandemic, other respondents can see how their financial lives have changed for the better.

[Read: Best Balance Transfer Credit Cards.]

Among those who say their money habits have changed, over 43% see changes for the better. About 10% say their money habits have worsened. And 47% say their habits have changed, but not for better or for worse, just differently.

Other takeaways from those who say they found a silver lining in the pandemic:

– More than 40% say they saved more money during the pandemic.

– Slightly more than 30% enjoy not feeling any pressure to spend money.

– Almost 30% have rearranged their spending priorities.

Type of credit card most commonly used for purchases

Only about 37% of respondents say they do not use a credit card when shopping. Among those who use a credit card, the most common cards are:

– Slightly less than 42% say they use a cashback credit card.

– Approximately 23% say they use a credit card with no bonuses.

– Almost 19% use a credit card for travel rewards for shopping.

– Around 17% say they use a different type of reward card.

[Read: Best Rewards Credit Cards.]

This is how you benefit from credit card rewards

Using your credit cards responsibly can save you money on your purchases and travel with deep discounts, if not free.

Pay your balance in full every month. I listed this first because if you don’t then you shouldn’t be using credit cards at all. When you have a credit, you pay compound interest. When you pay interest, any rewards you deserve will be offset. But a bigger problem is that it leads to credit card debt.

Set a budget. Each of your credit cards should have an item in your monthly budget. You will also need to track your spending to make sure that you are not using your credit card to make purchases after you have reached your monthly limit.

Use credit cards strategically. I have three different types of reward credit cards. In the pandemic year, I didn’t travel at all and cut a lot of expenses. But I still made nearly $ 3,700 in rewards from taking advantage of new rewards offers on my credit cards, like grocery discounts and streaming services. And I’ve used the right credit card for every type of expense.

Track your rewards. There are many free or premium online options that you can use to track rewards and use them to your advantage. You can also create your own system if you are familiar with Excel. Select a system and monitor it frequently, especially when trying to meet spending requirements for a new credit card bonus.

More from US news

What is a Fair Credit Score?

How long does it take to get a credit card?

Can a debit card be used as a credit card?

Survey: More than a third frequently participate in retail therapy originally appeared on usnews.com

Comments are closed.