Christmas will no longer be on credit for many shoppers, despite tempting offers from retailers and credit card companies trying to coax the plastic out of consumers’ wallets.
The lowest percentage of shoppers in the 27-year-history of a national survey said they used credit cards over the Thanksgiving weekend, while the use of general credit cards like Visa and MasterCard fell 11 percent in the third quarter from a year earlier, according to the credit bureau TransUnion.
“Cash is the route I’m taking this year, from past experiences with credit cards and being in debt and trying to pay it off for so many years,” said Liz Gonzalez, a community-college employee in Signal Hill, Calif. Her debt problems started two Christmases ago, when she charged the gifts that turned into the bills that sent her life into disarray. Ms. Gonzalez, 40, still owes $2,200 from that Christmas, and said her recent divorce had been caused in part by the stress of debt.
Good news and I hope folks continue to avoid credit cards even when the financial times get better.
Extremely encouraging article. More people need to learn that “credit” is just another word for debt. And debt is a four letter word. I have no credit cards and it is unlikely I ever will again.
Looks like Dave Ramsey is having an impact.
Dave Ramsey for the WIN! I paid off my car this month and am making presents for friends and family this year, mostly cookies. I am determined to be debt free ASAP!
If only our government would learn the same thing.
more change you can believe in ™. it is the economy, not Dave Ramsey – people just don’t have the income these used to. Outside circles like these, I don’t think he has strong influence.
I am learning the hard way about debt: $21,000 debt and unemployed. I listen to Dave Ramsey but cannot afford his programs. I suspect veteran’s advocacy may recommend bankruptcy.
I do not care if one pay off the balance, using debt to buy Christmas presents is dumb.
The reason for this economic pickle is the culture of debt in the US both personal and the national Debt. Spending above our means is a national past time. The solution is not Tea Parties or elections. The solutions starts when people start living within their means at homer then elect those lend to live with in their means at home to office.
One of the problems with democracy is we get the government we deserve. Since we (me included) run up debt to buy things that we think we “need”, why should we expect the people we elect to do any different? I’m hoping this reduction in using credit cards is a real change in the way people (me included) view spending that will be reflected in our elected officials.
7. Scatcatpdx wrote:
[blockquote]I am learning the hard way about debt: $21,000 debt and unemployed. I listen to Dave Ramsey but cannot afford his programs. I suspect veteran’s advocacy may recommend bankruptcy. [/blockquote]
We were able to take Financial Peace University due to a “scholarship” given by another parishioner who wished to remain anonymous (the fee is only $99). When we become debt free we plan on donating the same amount to the program to help out another family in need. I would suggest to you that you find a church in your area that is offering FPU and ask if there are any scholarships available.