More consumer credit card use expected during holiday season

Most consumers tend to spend more when the holidays roll around, and now a greater number will take on credit card debt when shopping online, instead of using their debit cards.

Consumers who are generally feeling better about their finances in the wake of the recession are more likely to use their credit cards than they have been in the past few years, and online purchasing ahead of the holidays will likely see an even greater shift toward that payment method, according to the latest Online Retail Payments Forecast from Javelin Strategy and Research. In addition, they will likely spend more on their credit cards to make a single purchase than they would with debit.

The average online credit card purchase now amounts to $82.10, while the average debit transaction costs $58.29, the report said. This type of spending is also incentivized with promotions like those seen on Cyber Monday, when prime deals tend to entice consumers into spending more than they likely planned.

It can be hard for consumers to reduce debt around the holiday season, but sitting down and creating a budget before doing any shopping, and then sticking steadfastly to it, can be extremely helpful.