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Customers Using Less Credit Cards and More Cash

 
 
Reply Sun 23 Nov, 2008 01:26 pm
Quote:
Cash or credit? For more Americans, who have already maxed out their credit cards or are just trying to manage their spending better in the tough economy, the answer is increasingly the old-fashioned one.
Retailers like Wal-Mart Stores Inc., Target Corp. and J.C. Penney Co. are noticing a marked shift away from credit cards in favor of cash and debit cards. A big factor is less credit available as major card issuers cut spending limits and raise fees even for customers who pay their bills on time.

The shift ends Americans' long love affair with credit cards and is one of the changes in consumer behavior that has emerged since the financial meltdown that could depress consumer spending this holiday season and affect shoppers' habits long afterward.


http://www.breitbart.com/article.php?id=2008-11-23_D94KQQ880&show_article=1&cat=breaking

Interesting.................Maybe people are beginning to realize that a credit card is not a license to buy anything that is not nailed down, even if the person can't afford it.

I still use credit cards, but I have the bill taken out automatically from my checking account. I used to use a debit card at the super market, for convenience, but I kept hearing stories about how they were less safe than credit cards, so I stopped using them.

Are you still using your credit cards? If not, is using cash or debit cards made any difference in the way that you are spending?
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Type: Discussion • Score: 10 • Views: 3,486 • Replies: 21
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hamburger
 
  1  
Reply Sun 23 Nov, 2008 01:48 pm
@Phoenix32890,
Quote:
I still use credit cards, but I have the bill taken out automatically from my checking account.


that's exactly what we do . pretty well anything over $20 goes on plastic - good way of keeping track of expenses and helps in planning the budget for the next year .
also handy if something has to be returned to the store .
on top , we get a 1/2 % bonus from the bank (shopping coupon) ; so twice a year we get our groceries for free .
too bad we can no longer charge our municipal taxes on plastic .
hbg
0 Replies
 
roger
 
  1  
Reply Sun 23 Nov, 2008 02:08 pm
@Phoenix32890,
Not making any changes. Gasoline always goes on a card, as does internet shopping. I also try to use plastic as much as possible when traveling as I don't like to carry lots of cash and also don't want to run short of what I do carry.
hamburger
 
  1  
Reply Sun 23 Nov, 2008 02:11 pm
@roger,
mrs h's billfold was lifted out of her zippered handbag (which she was carrying in front of her and holding onto !) in berlin a few years ago .
the "plastic" was replaced the next day - the cash was gone forever !
(luckily it was less than about $100)
hbg
0 Replies
 
Walter Hinteler
 
  1  
Reply Sun 23 Nov, 2008 03:37 pm
Here in Germany, mostly electronic cash cards (from your local bank) are used. (A European kind of debit card.)

While credit cards were generally given only to people after a larger credit check then e.g. in the USA or UK, and until recently it was normality to pay your credit cards debts once a month, credit card organisations are now (sic!) starting to sell the US and UK model ...
0 Replies
 
dyslexia
 
  1  
Reply Sun 23 Nov, 2008 03:53 pm
I live on my debit card.
Reyn
 
  1  
Reply Sun 23 Nov, 2008 04:49 pm
@Phoenix32890,
Phoenix32890 wrote:
Are you still using your credit cards? If not, is using cash or debit cards made any difference in the way that you are spending?[/b][/color]

I rarely use my debit card to pay for anything. Only if no credit card option available.

Also, I don't use cash too often either. Most of the time it's on the one credit card that my wife and I share. The bill gets paid in it's entirety every month.

For us, it's a plus to use the card, because it's a rewards account. When I have 3000 points, I get a $25 Esso gas gift card.
0 Replies
 
ebrown p
 
  2  
Reply Sun 23 Nov, 2008 05:01 pm
I consider credit cards a great evil. I keep one for the rare case where I need to rent a car, and nothing else-- and it pisses me off that I need them to rent a car.

I think it is grossly wrong for credit card companies to charge stores... a cost that is passed on to customers whether they use credit cards or not. I think it is grossly wrong for credit card companies to offer "cash back" or other bonuses... gimmick that is far from free. They are raising the prices of goods across the board to keep some of you addicted to their "services".

Of course the real cost of credit cards is their effect on the poor. The billions of dollars being paid by the Americans who are least able to pay it and who are getting absolutely nothing in return. Anyone charging 28% interest to people having trouble feeding their family is deserving of the hottest place in hell.

Let's not forget that it was the credit industry that is at the root of our current economic failing... another consequence that is being paid by all of us, whether we were involved or not.

I say... to hell with credit cards.
0 Replies
 
hamburger
 
  2  
Reply Sun 23 Nov, 2008 05:40 pm
i have often enough offered stores a cash payment for large purchases in return for a small discount . the usual answer : "no thanks , we are happy to put it on your credit card . " .
a business-owner friend of ours pays most of his suppliers with a credit card .
usually he gets enough "points" to buy a round-trip ticket to europe once or even twice a year . he is pretty happy with the credit card business . he told me that his sales would likely be considerably lower without credit cards .
he also doesn't have to accept cheques that may not be honoured - not an unusual occurence in the days when cheques were the payment of choice .
nothing is ever black or white only - a lot of grey .
hbg
0 Replies
 
boomerang
 
  1  
Reply Sun 23 Nov, 2008 08:07 pm
I pay cash for almost everything. If I don't have the cash, I can't afford it.

I only do that because I have excellent credit, though. I do worry a bit about my credit suffering in the future because of my current habits. Should I need credit I want to know that it's available.
Reyn
 
  1  
Reply Sun 23 Nov, 2008 09:49 pm
@boomerang,
boomerang wrote:

I pay cash for almost everything. If I don't have the cash, I can't afford it.

Don't you find carrying large amounts of money with you or left at home is risky?
0 Replies
 
Region Philbis
 
  1  
Reply Mon 24 Nov, 2008 04:02 am
@dyslexia,
for anything over $20, out comes the debit card.
but i still use cash for smaller purchases.

somehow it doesn't seem right to pay for a soda that way...
Bella Dea
 
  1  
Reply Mon 24 Nov, 2008 07:50 am
I just got one of my cards rates raised...and I've been with them for over 5 years. I'll be cancelling them.
JPB
 
  1  
Reply Mon 24 Nov, 2008 07:57 am
My payment choices haven't changed -- I still charge almost everything and pay the balance in full each month -- but my spending choices have changed.
0 Replies
 
Butrflynet
 
  1  
Reply Mon 24 Nov, 2008 08:27 am
@dyslexia,
dyslexia wrote:

I live on my debit card.


Me too. I paid off my credit cards and cut them up 14 years ago and only use my Visa debit card. It works for internet transactions as well as in place of carrying cash. I write one check a month for my rent. The utilities all get paid online and I do my grocery shopping online.
0 Replies
 
roger
 
  1  
Reply Mon 24 Nov, 2008 12:35 pm
@Region Philbis,
Region Philbis wrote:

for anything over $20, out comes the debit card.
but i still use cash for smaller purchases.

somehow it doesn't seem right to pay for a soda that way...


Harrumpf! Your gas is .35 lower than here in the middle of the oil patch, and now your sodas are under $20.00. Where do I file a grievance?
0 Replies
 
Phoenix32890
 
  1  
Reply Mon 24 Nov, 2008 01:11 pm
@boomerang,
boomer- That's the problem. If you only pay cash, you will never establish a credit rating. Then you may want some credit, and you won't have it.

My suggestion is to get a credit card, and use it to buy only what you would normally buy for cash. I think that the fact that you are used buying for cash would indicate that you would be prudent in your credit card use. Pay the card off every month, or better still, have the bill taken out automatically from your checking account.
An advantage of a credit card is that some of them offer "cash back" and/or points towards something or other. You have to check around for the best deal. We have a couple of cards with a "cap" on the cash back every year. When we reach the maximum cash back on one card, we just use the other one.
Phoenix32890
 
  1  
Reply Mon 24 Nov, 2008 01:37 pm
@Phoenix32890,
boomer- Take a look at this:

http://www.bankrate.com/brm/rate/cc_home.asp

I use this site to find the best rates for CDs, but they also have a great section on credit cards, with lots of information.
0 Replies
 
roger
 
  1  
Reply Mon 24 Nov, 2008 01:41 pm
@Bella Dea,
Watch it! I think they're all doing it. They've got to make up for defaults somehow, you know?
boomerang
 
  1  
Reply Mon 24 Nov, 2008 01:46 pm
@Phoenix32890,
Thanks Phoenix, I will take a look but I really do have great credit, just haven't used it in a while. I just don't want to be one of those women who stop working to raise a kid and fall off the face of the credit world.

I don't worry about carrying cash as I never make very big purchases and I don't look like the kind of person who would have much cash on me!
 

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