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Holiday shoppers shunned credit cards
Reuters ^ | November 30, 2009 | By Brad Dorfman

Posted on 11/30/2009 4:38:39 AM PST by Oldeconomybuyer

CHICAGO (Reuters) - Cash was king for consumers who shopped over the Thanksgiving weekend, according to survey results released on Sunday, and that factor could have cost retailers additional sales.

Only 26 percent of people who shopped over the weekend said they used credit cards for their purchases, according to a poll conducted for Reuters by America's Research Group.

"That's an amazing shift in consumers' habits," said Britt Beemer, founder of America's Research Group.

Consumers shunning credit cards is a bad sign for retailers, since people who buy gifts with a credit card tend to spend anywhere from 20 to 40 percent more on the gift, Beemer said.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: blackfriday; creditcards; debt; obamanomics; retail
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To: Nervous Tick
I use a credit card for every purchase I can make. Then, without fail, I pay it off completely every single month.

If you do that, you get the use of the card for free, like I do. In addition, get a card with cash back, and the CC actually pays you for using it. My Amex gives me 2% back on gas and groceries and 1% on everything else.

21 posted on 11/30/2009 6:39:54 AM PST by sportutegrl (If liberals could do math, they would be conservatives.)
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To: doodad
After 25 years on my card, Citi decided to cut off my card because I was not using it enough at their 30% interest. So long Citi.

I anticipate this shortly, myself. Cry me a river... < /s>

22 posted on 11/30/2009 6:43:13 AM PST by Tijeras_Slim (Live jubtabulously!)
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To: Oldeconomybuyer

Gee, let’s see, our benevolent ozero media tells us the recession is over, so go out and spend. Yea, right. No one trusts this goofball or his media. I used to have a card that tried to charge me 21%, so we had a little chat. I called them and asked them to lower the rate to 9%. No go. So I let the rocket scientist know that they could either get 9% of a balance, or 21% of nothing. It took 4 levels of management until I got someone who actually understood what I was saying. Got the 9%, then paid it off anyway.


23 posted on 11/30/2009 6:52:59 AM PST by Texas resident ( Doing my part to piss off the heathen left.)
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To: abb

Woo hoo, love Dave Ramsey. However I do put all big purchases on my American Express and pay it off when the bill comes. The extended warranty can’t be beat.


24 posted on 11/30/2009 8:51:54 AM PST by ThisLittleLightofMine
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To: Richard Kimball

Will your credit score be reduced by them cutting your credit line?


25 posted on 11/30/2009 8:53:44 AM PST by ThisLittleLightofMine
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To: Oldeconomybuyer
Probably they don't dig 30 percent interest on purchases.

We bailed those jackasses out so they could rip us off with usury rates. Should have let them sink.
26 posted on 11/30/2009 8:55:48 AM PST by mysterio
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To: 6SJ7
And to top it off, the Mafia has never had a bailout from the government courtesy of the taxpayers

Actually they kinda did, during WWII, they needed the Mafia to keep security in the ports, so they made a deal.

27 posted on 11/30/2009 8:57:50 AM PST by dfwgator
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To: CSM

The beauty of cash is you don’t have to stand there during the purchase and worry if it’s going to clear or if you’re over your limit!

Dave Ramsey ping.

Cash is king...debt is dumb. Life without owing money is priceless :)


28 posted on 11/30/2009 8:59:39 AM PST by Hoosier Catholic Momma (Arkansas resident of Hoosier upbringing--Yankee with a southern twang)
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To: ThisLittleLightofMine

No. For one thing, AMEX won’t share info with the credit bureaus. Second, the credit bureaus are actually pretty accurate. They don’t screw up nearly as often as people claim.
It could have a negative effect in that part of the score is based on your available credit vs. used credit. If you only have one credit line and it’s slashed, that could hurt you. I keep multiple lines open and have a high limit, but use them enough that I don’t get them closed out for non-use.


29 posted on 11/30/2009 9:03:42 AM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: abb

“Even if it is a loss-leader for them, they probably have data that show that sooner or later even us “disciplined” types fall off the wagon and pay the 24% interest for a cycle or two.”

Bull shit!!!

In my 72 years I have never paid one cent in interest for anything that I have bought except our first home.

I have a credit card with a $30k limit that I have had for 25 years that I charge $3-4k/month and pay off every month.


30 posted on 11/30/2009 9:25:59 AM PST by dalereed
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To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

“people who buy gifts with a credit card tend to spend anywhere from 20 to 40 percent more on the gift,”

Which is the best reason to buy with cash, have a plan and don’t deviate from that plan. I understand that some (very few) CC users can manage to stick to the plan and not spend more than was planned, following that up with paying the full balance each month, however I believe that this is a very small percentage (maybe a fraction of a fraction) of CC users. I prefer not to even risk it....Remember, if you play with snakes you will eventually get bit.

Thanks Hoosier for the ping.

Dave Ramsey Fan Ping List.

If you would like to be added to the “Live like no one else, so that you can LIVE like no one else” list, feel free to Freepmail me.


31 posted on 11/30/2009 9:26:19 AM PST by CSM (Business is too big too fail... Government is too big to succeed... I am too small to matter...)
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To: Oldeconomybuyer

I don’t even have a Credit Card why assume the risk?

I know I know I know, All you much wiser than me FReepers are gonna tell me about cash back and all the great things putting yourself at risk does for you.


32 posted on 11/30/2009 9:28:33 AM PST by Rightly Biased (If Clinton was the first black president then Obama is the first black Jesus.)
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To: CSM

I expect cash will be taken away from us fairly soon.


33 posted on 11/30/2009 9:42:53 AM PST by Chickensoup (We have the government we deserve.)
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To: Oldeconomybuyer

My gifts are purchased, wrapped, and under the tree. Paid cash for everything including 2 DS systems for the little kids, 2 DS games each, a new flat-screen for the RV with a new DVD player for Hubby, tons of stuff for the grandgirls and my grown kids.

I even got gifts for the pets. No Debt. Not one penny.

And....in honor of my nice promotion, I bought myself a new leather padfolio for work and the Wii Fit Plus (already have the Wii).


34 posted on 11/30/2009 9:50:43 AM PST by mom4melody
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To: CSM

I tend to like credit cards myself. I use them regularly.


35 posted on 11/30/2009 10:05:48 AM PST by BertWheeler (Dance and the World Dances With You!)
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To: RayChuang88

Have you heard of mint.com?

http://mint.com

Their service allows you to track and analyze your spending with various graphs and other tools. I started using it after hearing Clark Howard recommend it. It’s great.


36 posted on 11/30/2009 10:12:37 AM PST by Yardstick
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To: Chickensoup

I certainly hope not.


37 posted on 11/30/2009 10:38:29 AM PST by CSM (Business is too big too fail... Government is too big to succeed... I am too small to matter...)
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To: CSM
Thank you for the ping!
38 posted on 11/30/2009 5:51:17 PM PST by PERKY2004 (Proud Military Wife (he's a pilot!) -- Please pray for our troops!)
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To: CSM

BUMP!


39 posted on 12/01/2009 5:52:32 AM PST by Diana in Wisconsin ( "When you subsidize poverty and failure, you get more of both." - James Davidson)
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