dcsimg

Borrowing on the Decline, Consumers Turning Away from Credit Cards?

Written by admin - 2 Comments

According to a recent report, consumer borrowing fell in August for the first time in more than ten years. While this decrease was predominantly driven by changes in non-revolving debt, stores such as Kohl’s (KSS), Target (TGT), and Lowe’s (LOW) are reporting that shoppers are increasingly turning away from credit cards and opting for debit cards or cash. Not surprisingly, this decline in credit usage is hurting sales performance.

For their part, MasterCard (MA) and Visa (V) have both reported a significant increase in debit card usage. At the same time, analysts are cutting their expectations for both companies, as a decline in overall spending will reduce transaction fees generated every time someone swipes their card.

I can’t speak for anyone else, but our spending habits have remained relatively unchanged despite all the recent economic turmoil. Of course, we’ve always kept our spending more or less in check, so there’s not a lot to change. Aside from that, our credit limits haven’t been changed (and we never get anywhere near them)

Source: CNN.com, FTD.de, and Forbes.com

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • LinkedIn
  • Twitter
  • Yahoo! Buzz

Comments (scroll down to add your own):

  1. Awesome!

    Comment by ragingpeasant — Oct 12th 2008 @ 7:26 am
  2. Hopefully, recent events will help us all realize that credit, while a useful tool for some, can be dangerous.

    Comment by NCN — Nov 3rd 2008 @ 7:23 pm

Leave a comment

Subscribe without commenting

Get free updates...

Articles via e-mail:

Search this site...

Sponsors...


Credit card resources...


Recent articles...

Recent comments...

  • Leigh: Title says 35 secrets, but there is only 10…?
  • George: Personally, I think that credit cards should be paid off first since...
  • John: Hi , could someone tell me how much my credit card is worth ,, I have a...
  • mark Kesler: Where is the link to sign up online? I can’t find an...
  • teresa swett: my business was needing IRS 1040 – Schedule E earlier...
  • Marie: Hello, I have vintage credit cards I would say from the 1960’s...
  • 118 118 Money: Get more information about how 118 118 money loans work : Who...
  • Lisa Malcomb: I have a problem and cannot get a hold of a real human on...

Most talked about...

Disclaimer...

    The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.