In an effort to avoid taking on any more credit card debt, many consumers are now using alternative payment methods, including debit and cash.
A number of polls have recently found that consumers are so wary of credit card debt these days that they are either drastically reducing their use of these accounts or stopping altogether, according to a report from CBS MoneyWatch. For example, a recent survey found that 43 percent of holiday shoppers will use their debit cards as their primary form of payment, up about one-third from the number in 2005. Meanwhile, credit card use this year will slip to the lowest level since 2002.
Another poll, by Javelin Research, found that just 56 percent of consumers took on credit card debt regularly in 2009, down from 87 percent in 2007. Further, the polling firm expects that number to slip below 50 percent by the end of this year.
Many consumers have further reduced their existing credit card debt by increasing the total of their monthly payments.