The recession has cooled the American ardor for living on credit. After years of saying “Charge it,” consumers are more often paying with their debit cards instead.
Worry about jobs, fear of fluctuating interest rates on credit cards and wariness about spending too much are contributing to the change.
“People are managing their money in a different way,” said David Robertson, publisher of the Nilson Report, which tracks the credit card industry. “You clearly have a situation where those people who have jobs are exhibiting recession anxiety and they are making more debit transactions.”
Trying to spend no more than you have….
Imagine that. I am praying we are coming to our senses.
This trend is the only hopeful sign I have seen in the economy for quite some time.
Yes. Going from credit to debit, well, it’s about time!!
David Handy+
My wife and I run everything we can through our credit cards – but then we get cash back to do so. We also pay them off every month and do not pay annual fees.
If you lack the ability to do this or lack the discipline to do it, you are better off on using debit cards.
YBIC,
Phil Snyder
We are doing the Dave Ramsey “Financial Peace University” – it’s awesome! Just cut up the credit cards…. and paying actual CASH for food and gas and clothes. I highly recommend this program for churches. There is a couple in our class who is engaged – what a GREAT plan for pre-marital counseling!