Conservative Credit Card Spending Projected for Holidays

Conservative Credit Card Spending Projected for Holidays

Credit card debt will still be the biggest financial worry for consumers in the new year, according to a new myFICO survey.

The survey showed that almost a quarter of respondents said they will need more than three months to pay off their 2012 holiday expenses, compared to 18 percent in a similar survey conducted in 2010.

Spending on credit cards is expected to be somewhat conservative as nearly 65 percent of those surveyed will charge less than $500 on their credit cards. In addition, 80 percent of consumers will use less than 25 percent of their credit limit. One in five people will consider opening a new credit card account during the holidays.

Nearly half of the respondents said they will use credit cards for all holiday purchases.

myFICO is the consumer division of FICO.