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from the I-can-spend-until-I-reach-my-credit-limit,-right? dept.
If you have credit card debt, it may be time to scale back what you spend on luxury purchases.
But we’re not talking about doing without small luxuries like your morning coffee or an afternoon snack – things like your car loan or lease, leisure travel, dining and more can make a bigger difference.
A new CreditCards.com poll shows U.S. consumers who have credit card debt are outspending debt-free households in seven of nine discretionary spending categories (see chart). However, few are willing to cut back on any of their luxury purchases.
In fact, 18 percent of Americans who have credit card debt are unwilling to trim expenses in nine categories, including dining out, leisure travel and clothing (see chart). This despite the fact that the average credit card APR is nearly 18 percent.
[...]Our luxury spending poll also found:
- Many can live without dining out. Dining and takeout is the category all respondents – in debt or not – are most willing to cut in half. Still, less than half of those with credit card debt (48 percent) would trim their dining budgets, which average $2,186 per year.
- But vacations are a big budget item many won’t budge on. The average household with card debt spends $2,211 per year on leisure travel. But only 3 in 10 of those respondents would be willing to cut their travel spending in half.
- Cars, haircuts and cellphone plans are the biggest must-haves. The three categories people in debt were least willing to cut in half are personal care and beauty (23 percent), cellphone services and upgrades (25 percent) and car loans or leases (26 percent).
- Cut my streaming? You’re dreaming. Only 39 percent of respondents with debt would be willing to cut back on subscriptions services such as Netflix, Spotify and Xbox Live. However, at $1,198 per year, it’s the second-least-costly luxury expense among this group.
https://www.creditcards.com/credit-card-news/luxury-spending-poll/
(Score: 2) by DeathMonkey on Friday July 12 2019, @08:10PM (4 children)
Except the question is what costs are you willing to cut in half.
The non-debtors are only spending 20% less.
A quick google of men's haircuts puts the price more like $20 which puts you at $480 per year. Half of $1146 is $573. So they have less that $100 for an entire year's worth of deodorant/toothpaste/shaving stuff/soap.
(Score: 2) by JoeMerchant on Friday July 12 2019, @09:01PM
Around here, the haircut is $18 - but I tip well, so it's $23. But, then, I only get it cut once every 6-8 weeks (thus the bigger tip), so annual expense is about $170.
For the kids, yeah, 8/8 on top and 5/8 on the side, it's not even about the money, it's just quicker and easier than driving them to the barber.
🌻🌻 [google.com]
(Score: 0) by Anonymous Coward on Friday July 12 2019, @09:45PM
Now I know why it is that they always make a big deal out of handing out "hygiene kits" to the homeless! And here I thought it was the make them smell less bad, or because actual housing was too expensive, because of credit cards.
(Score: 1) by khallow on Saturday July 13 2019, @06:09AM (1 child)
At once a month, that's only $240 per year. At once every two months, that's only $120 per year.
(Score: 0) by Anonymous Coward on Saturday July 13 2019, @12:14PM
I have to trim my hair at least once a week because it grows so fast - this isn't something that can be calculated broadly because it varies wildly.