Many consumers plan to use their credit cards on Valentine's Day. (iStock)
Under the economic strain of inflation and high prices, Americans are struggling to make ends meet on their Valentine's Day budget, even as they feel pressure to spend more this year, according to a recent survey.
Overall, Americans in relationships expect their partners to spend an average of $157.52 on gifts this Valentine's Day, according to Trustpilot. investigation. For the 26% of Gen Zers and 26% of Millennials in relationships, meeting this expectation means reducing living expenses needs like gas, food, and rent.
Additionally, 25% of Millennials in a relationship said they would consider taking on credit card debt to buy holiday gifts and experiences. According to one study, Americans now have $1.8 trillion in credit card debt after accumulating a total of $48 billion in new spending in the third quarter of 2023. Recent reports on household debt From the Federal Reserve Bank of New York.
About 30% of respondents in a relationship said they don't celebrate Valentine's Day because of the expense. Sadly, some Americans who refrain from showing their love through gifts may pay the ultimate price for this decision. Ten percent of their partners said they might cancel Valentine's Day or even break up if they didn't receive a gift.
“Our findings last year were eye-opening, as consumers said they were cutting back on Valentine's Day spending due to the cost of living crisis,” said Alicia Skubik, chief customer officer at Trustpilot. “This year will be no different, and may even get worse.”
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This is the price of a romantic dinner
According to driveresearch.com, approximately 52% of consumers said they plan to celebrate Valentine's Day in 2024 and expect to spend approximately $192. investigation. This is an increase of 9.9% compared to 2023, when the average consumer spent about $175.
That may seem generous, but research shows that the average cost of a romantic Valentine's dinner out is $121, with an additional $33 spent on drinks. This is not surprising, as out-of-home grocery inflation rose by 5.2% last year, according to the latest consumer survey. price index (CPI) Published by the Bureau of Labor Statistics (BLS).
According to US Foods, the more often you eat out, the more it costs, and by 2023 Americans will have spent an average of $166 per person per month on eating out. investigation.
If you're struggling with inflation or rising prices, one way to save money is to eat out less often. Another way to reduce your monthly expenses is to pay off your debt. With a personal loan, you can consolidate your monthly payments and pay off your debt at a lower interest rate. Contact Credible to speak with a loan specialist and find out if this is the right option for you.
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Credit card debt may increase
Consumers who find Valentine's Day prices unaffordable this year are turning to credit cards to make ends meet. According to a study by driveresearch.com, about 3 in 10 Americans rack up credit card debt from their V-Day spending, and 43% of them hide it from their partners.
According to a recent Quicken report, rising consumer debt burdens mean less cushion for emergencies and less money available for savings. investigation. Fifty-four percent of middle-class Americans and 56% of young adults said their current savings would not last them more than three months if they lost their source of income.
Research shows that it's not just America's middle class that is feeling the effects of rising debt. More than a quarter (28%) of people earning more than $200,000 a year said their savings would only last three months if they lost their source of income. Financial experts recommend that consumers have approximately three to six months' worth of living expenses on hand. emergency savingsBut inflation and rising costs are making this goal difficult.
If you're having trouble paying off your debt, you can consider taking out a personal loan to consolidate your payments at a lower interest rate and save money each month. Visit Credible to find an interest rate that's right for you without affecting your credit score.
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