As Inflation Lingers, Some Consumers Continue Cutting Back
Nearly one-third of respondents (30%) in a recent consumer survey from TD Bank said they continue to cut back on spending over concerns about the economy.
The query of more than 1,500 consumers conducted by the financial institution also found that 50% of respondents said their spending has increased the most on groceries while 58% said they spend the most on groceries in a typical month.
Additionally, 67% of those surveyed revealed that some aspect of their finances keeps them up at night, and 31% said they are planning a major purchase in the next year. Despite these concerns, Americans remain overwhelmingly confident in their financial situations with 85% indicating they are confident in their ability to manage their finances.
"The daily cost of living is rising for many Americans," said Chris Fred, head of Credit Cards and Unsecured Lending at TD Bank. "Fortunately, there are useful tools available to help consumers manage their finances and maximize card benefits, whether that's by finding a card with cash back on groceries or by identifying a card with low interest if you know you are going to carry a balance."
Consumers surveyed said they have been hesitant to embrace Buy Now Pay Later (BNPL) options with only 28% of respondents having used BNPL installment options. The use of BNPL is particularly popular among Millennials, with 45% having used this service compared to just 16% of Baby Boomers. Those who do use BNPL often cite the ability to spread out payments for items that wouldn't otherwise fit their budget (47%) and the appeal of low or no interest rates (23%).
