Consumers' credit cards won't leave the wallet this Christmas, with piggby banks to be raided for hard-saved cash instead, according to the new Dun & Bradstreet survey of Consumer Credit Expectations.
The survey asked consumers how they plan to fund the additional expenditure that many people make in the December quarter and found that "only 20 per cent planned to apply for new credit, down from a peak of 33 per cent in mid 2009."
Nearly 60% of respondents said they will cover extra spending from their savings.
The survey also recorded "a 25 per cent fall in the proportion of consumers anticipating having extra money in the lead up to Christmas."
Dun & Bradstreet CEO Christine Christian said "This does not bode well for key sectors like retail and tourism that are already experiencing an otherwise dismal year. At this stage it is doubtful whether consumers will deliver as expected this Christmas."