More customers resume using old-fashioned cash

Associated Press ^ | 11-23-2008 | ANNE D'INNOCENZIO

[Ronzo]

NEW YORK – 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.

[CindyDawg]

It's an inconvenience but I'm not even carrying the ATM card anymore.

[Sacajaweau]

I'm back to writing a $75 weekly check for gas and groceries and little things. Just like the feel of CASH in my pocket.

Except for my car payment, no outstanding debt...just regular bills....rent, utilities, insurance, etc.. It's the health insurance that kills me...costs more than my food and gas...

[Ronzo]

It's an inconvenience but I'm not even carrying the ATM card anymore....

I still carry mine, only because it's more convenient that going to the teller..

I cut up my last Visa card, which I has only used heavily on a business trip, when I found out they were charging a mere 27% interest rate...

I've made the switch back to cash ONLY three months ago, and haven't looked back.

[bunky]

Knowing that I am paying less and less in interest charges to those thieves who hold my money in their bank at little or no interest, while at the same time getting bailouts from my tax dollars is somewhat comforting. I just gave my wife a bundle of cash for the Thanksgiving Day shopping and she almost didn't know what to do with it!

[6323cd]

I just discovered this site. I've been wanting a satnav unit for some time, so am buying it through there on the installment plan. Will see how well it works.

[Paperdoll]

If everyone follows suit, we may get out of this mess yet!

[CindyDawg]

I’ve found that when I carry it, I use it and spend more. I don’t keep up with totals as much. When I’m paying cash I’m more selective.

[PennsylvaniaMom]

I work retail (office) and one of my many (and I do mean many) responsibilities is the cash drawers. I have noticed a spike in cash sales (and big bills 50s, 100s—which depletes change...and makes my life interesting). One problem...we deal w/alot of return custormers (good) but our store owner doesn’t want to ‘insult’ our customers w/a check pen (the marker you use to validate bills). Soooo...I am always leary of the ‘big ones.’ So far we haven’t been burned ...but?

[ThomasThomas]

As someone who has been around cash counting machines. Cash is about the dirtiest thing you will touch in day.

[conservative cat]

Cash is about the dirtiest thing you will touch in day.

I figured that out my teenage years working cashiers. I would wash my hands on break and the soap foam would be almost black. I have an almost pathological distaste for touching cash and coins, now. People make fun of me until I point out: dirty people carry money, strippers get it stuck in their panties, it gets dropped in mud (or worse), and whatever other examples I can think of at the time.

[Robert A Cook PE]

In a realted headline, “Americans are paying less taxes with cash-based incomes ...”

[LucyT]

“Money actually is filthy and covered in germs – but scientists disagree as to the associated risks of handling cash. A recent study done in the Netherlands found that coins may have up to 1,000 bacteria, while cash has a few million.”

www.msn.com

[Iowan]

Thanks, LucyT

Ping.

[flash2368]

“I cut up my last Visa card, which I has only used heavily on a business trip, when I found out they were charging a mere 27% interest rate...”

NOT having a card is a lot worse in the long run. Heavily affects your credit rating if you don’t. Trick is to keep at least one, use it only for what you pay off in full every month or maybe just run a small balance. There are cards with lower rates you can find. I refuse to use a debit card, its a direct route into your bank account for thieves who can get your pin number.

[donnalee]

I had an Aunt that never had a credit card until she retired and found how hard it was to make reservations etc. to travel. She finally broke down and got one but to make sure she never spent more than she could afford, deducted each purchase from her checking acct. balance. When the bill came, she was sure she could pay it all.

Anyone know what banks have reduced spending limits or why? I’ve seen no difference in the offers in the mail, I had hoped I would have less junk mail.

[prismsinc]

I carry cash because I lost faith in our banking system. Nationalizing the banks means Eclair’s administration can freeze your assets.

Not for me. I’ll get a cash safe. I’ll take money out of it when I need it.

[Right Wing Assault]

raise fees even for customers who pay their bills on time

That figures. Then if you cancel your cards, your credit rating drops.

[Fresh Wind]

And if you open new cards, your credit rating drops. If you use credit your credit rating drops. If you don’t use credit your credit rating drops.

Notice a pattern?

[Right Wing Assault]

If you don’t use credit your credit rating drops.

I one I forgot about and never used. Without warning they canceled it. Credit rating drops. Another one I had at least gave me a warning. So I bought a few things and they've decided to keep me.