Cash-strapped Americans are dreaming of a green Christmas as money woes dampen what’s supposed to be the happiest time of the year.
A new study has laid bare the dire state of the economy, with a whopping 84% shoppers set to use credit cards to cover costs this holiday season, stricken by soaring prices.
The alarming statistic was uncovered by MoneyLion, which surveyed 1,000 American adults about their spending. Data was weighted by age, gender and region to be nationally representative.
The survey found that 30% plan to use buy-now, pay-later platforms such as Klarna and Afterpay to ensure they can provide presents for their loved ones, while 14% say they’ll take out a personal loan.
However, many are vowing not to go into debt and are looking for a second job to cover added costs this year.
A quarter of Americans will take an extra job to help supplement their income, per the survey, including 44% of Gen Z and 34% of millennials.
Millennials appear to be the generation suffering the most from a sluggish economy, with 35% saying they’ve returned a gift to cover cost-of-living expenses, such as rent or food.
The grim MoneyLion survey jibes with a recent study conducted by Talker Research, which found nearly one-fifth of Americans had cut back on groceries so they have funds to buy presents.
However, the extremely dire situation may not accurately be represented in the overall economic outlook.
CNN reports that high-income earners are spending more than ever, making the economy appear healthier than it really is, masking the increasingly painful reality that a growing number of Americans are finding themselves in.
“Low-income and high-income households are often living in two different worlds – and experiencing two different economies,” Joe Wadford, senior economist at Bank of America Institute, told CNN.
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