Creditnet News Story
Survey indicates credit card use may be down
Monday, November 30, 2009
By Linda McCarthy
Reuters poll shows 26 percent of holiday shoppers used credit.
Even if they have the best credit cards, it seems consumers shied away from using plastic during the initial holiday shopping burst.
According to a survey commissioned by Reuters, 26 percent of holiday shoppers said they used a credit card while making purchases. Of those polled, 39 percent said they used cash to make purchases, while the remaining survey respondents said they turned to debit cards.
Britt Beemer, founder of America's Research Group, which conducted the survey for the news organization, told Reuters that the polls results reflect "an amazing shift" when it comes to how consumers shop.
Beemer said that shift does not bode well for retailers because consumers who use credit cards while shopping are also likely to spend 20 to 40 percent more on gifts.
Consumers' shift away from credit cards during the holidays further reflects an overall decrease in the amount of debt they carry. According to the Federal Reserve, revolving credit was down 10 percent during the third quarter, which may indicate more people are trying to pay off their credit cards.
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