Holiday shoppers shunned credit cards

Reuters ^ | November 30, 2009 | By Brad Dorfman

[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.

[abb]

[Eye of Unk]

I do not use a credit card period.

[doodad]

Maybe it is because despite being bailed out, the credit card companies are jacking interest to usery levels and cancelling cards on people.

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.

[Nervous Tick]

>> I do not use a credit card period.

I use a credit card for every purchase I can make.

Then, without fail, I pay it off completely every single month.

Credit cards are not inherently evil. If you have discipline, they’re just a useful accounting tool.

[IbJensen]

But, but, our bloated, ruined economy is based on blowing money on useless Chinese manufactured items. We buy Christmas gifts and ornaments from a country that owns our debts and executes Christians.

[stephenjohnbanker]

Yep A good way to track expenses.

[abb]

Same here. And I use the rewards to scarf up points at Amazon, so I get my books ‘free.’

[prayerfullywaiting]

I noticed that as I was shopping. I was standing in a long line in a packed mall in Bangor Maine and noticed no one used their cards only cash. It really surprised me. I think that is a good thing. It means the Americans are wising up. It was so noticable that I made a comment at a family gathering.

[Richard Kimball]

Decreased use of credit is a good thing. I have an open account with Amex, and they sent me a letter, really rude, cutting my line from $20,000 to $8,000 because I was a bad credit risk. I had a WTF? moment, as my credit has always been great.
I checked my credit score and it was in the 770s. Then I realized the problem. When I opened the account I took advantage of their 1.9% until paid off and didn’t charge anything else on it. It’s not about me having good credit. It’s about them not being able to nail me with late payment fees and high interest rates. (Some) Credit card companies are jackals.

[RU88]

The reason that a lot of people are only using cash at this point is that they have effectively “maxed out” their credit. Unlike the federal government whose wind mills power the printing presses producing “Benjamins” to the point that they will soon be worth “Georges”, or “Jorges” if you will.

[STONEWALLS]

“Same here. And I use the rewards to scarf up points at Amazon, so I get my books ‘free.’”

....I’m a Cabela’s card guy...pay it off every month on time and in full...UPS is scheduled to deliver my new ‘free’ hunting coat today that I bought with rewards points...that’s the bonus for using their card...I don’t know how much longer they’ll continue to let guys like me to milk the system...I’m hearing rumors that card companies are dropping unprofitable card holders.

[shadeaud]

I can see it now.....’’City’’ bank employee robs armored truck and unloads it at his place of employment to give his own stimulus package

[abb]

I don’t know how much longer they’ll continue to let guys like me to milk the system...I’m hearing rumors that card companies are dropping unprofitable card holders.

Someone will provide the service. 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.

[STONEWALLS]

” 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.”

....I expect you’re right...it’s like what the casino boss said to the craps shooter....”sooner or later your luck’s gonna run out, and when it does; I want it to be at my tables.”

[RayChuang88]

This is why I using my debit instead—and constantly monitor my activity on my bank’s online banking service.

[Trust but Verify]

We only use American Express, and pay it in full each month. We avoid their exorbitant fees by changing cards each year, when they invariably offer us an upgrade to a more prestigious card with the first year's fees waived. It has worked like a charm.

[DM1]

I always use my credit card but i never carry a balance
never have never will
i get a lot of cool gifts and cash for using it and never had to pay a cent of interest. heck i have to spend the money anyway and its not like i get a discount for using cash so i literally get paid for using the bloody thing

[6SJ7]

24% interest rates on credit cards. Rates the Mafia could only dream about. And to top it off, the Mafia has never had a bailout from the government courtesy of the taxpayers.

[kaylar]

Me, too. I check my bank statement 6 days a week (the information isn’t updated on Sundays). I was astonished to learn that some people go weeks without checking their online banking statements and credit card balances. I check my cards daily, too, even if I hadn’t used them , just in case someone got a hold of my info.In all the years I’ve had credit and debit cards, I’ve only had one used fraudulently ONCE. This was back in February of 2007. And because I check my statements daily, I saw what that dishonest ebay seller did the very next day, had the card canceled that AM, and had a refund from the seller sent to the new card’s balance within days.