Seventy-three percent of consumers said they would tap into their savings when paying for expensive things like weddings, vacations, or other large purchases. Twenty-one percent said they would use their credit cards and 12% were planning to take out a bank loan.
Of survey respondents who said they were saving their money for some type of big life event or major purchase, 30% said they put funds into a separate account to keep savings compartmentalized. Many banks offer savings accounts that are tied to a customer’s checking accounts, making it convenient to transfer money between accounts. Multiple savings accounts can be set up and assigned different names to represent different savings goals.
When asked whether they felt “being in control of their finances” was crucial to full enjoyment of life’s biggest moments, 61% strongly agreed that it was. The most-named big-ticket events people had planned for the coming year were international vacations, weddings, weekend getaways and the purchase of a new car.
The poll was conducted online between March 13 and 17, 2014 and comprised answers from 3,035 respondents ages 18 and older.
Credit cards, loans still a good option
People who prefer to leave their savings safely tucked away could consider a no-interest credit card for some of those large investments and purchases. Many credit cards have an introductory period where no interest is charged for the first six months to nearly two years.
Using credit cards to pay for big purchases can also be an easy way to collect credit card rewards, which might be in the form of cash back, free plane tickets, hotel stays or gift cards. Many cards offer 5% cash back in select categories, including department stores, home improvement stores, and online. When planning a trip, a wedding, a home renovation or a large purchase, it’s wise to first see what credit card rewards are offered in the categories customers will be spending money in, before deciding how to pay for the purchases.
Using credit cards instead of cash from a savings account is sometimes the smarter financial move. The 73% of survey respondents who shun credit cards in this study could be missing out.
Read Also Related News
Recently U.S. News & World Report - a multi-platform publisher of news and information, conducted an online credit card debt survey with more than 1,000 adult respondents. It turned out that a huge number of American cardholders were...
Tis the season to spend money we may not have on things we may not need. As the winter holidays approach, many kids are preparing their letters to the North Pole and dreaming of the presents they hope will be under the tree on Christmas...
If you’ve ever had trouble making – and sticking to – a budget, you’re not alone. A recent survey showed that while 92 percent of Americans believe everyone needs a budget to keep their finances in order, only 70 percent are...
I need a credit card with a 0% APR to consolidate several of my credit cards into one payment. Please advise what card I can apply.
There are special credit cards that allow consolidation of other cards’ debts - the balance transfer credit cards. These cards usually come with a 0% intro APR on balance transfer offer. The zero introductory period varies, but as a rule it is between six months and two years. So you can find a credit card with...
The easiest way to find out if you have credit accounts under your name is to request a copy of all your three credit reports: Experian, Equifax, and TransUnion. The reports contain information about active credit accounts, its issuers, and the information about credit accounts balances. If you want to protect yourself...
To set a PIN on your credit card, you should call the credit card issuer at the number on the back of your credit card and request your PIN. After that, the issuer will mail to you your PIN. In the meantime, if you need cash, you can go to a bank office and present your credit card and picture ID.
The overall process of getting a credit card can take up to 30 business days. To know the status of your credit card applications you should contact the credit card issuer. A quick online search for the bank or credit card issuer's name should turn up a customer service phone number or email address. Banks and credit card...