More than 8 million drop out of credit card use
NEW YORK (AP) - More than 8 million consumers stopped using credit cards over the past year. The decline stems from a combination of consumer choices and bank actions.
An analysis by credit reporting agency TransUnion found that use of general purpose credit cards bearing MasterCard or Visa logos, or issued by Discover or American Express, fell more than 11 percent in the third quarter, compared with the July to September period last year. About 62 million people now have an active card, compared with 70 million a year ago. The Chicago company found that consumers in the subprime category, or those with low credit ratings, were believed to be without cards mostly because they were shut down by banks after payments fell behind or balances were written off.
"One can quite reasonably infer that's not voluntary," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. Banks have written off record amounts of credit card balances in recent years. But a significant portion of the decrease in card usage reflects decisions by cardholders to stop using credit, Becker said. "They're simply either not purchasing as much or paying down balances."
Many of these individuals may have shifted to using debit cards. In the past several years the use of debit cards has grown steadily and now surpasses credit card use in both the number of transactions and dollar volume. Interest rate increases by credit card companies and reduced credit lines have contributed to that trend.
To those who chose to voluntarily stop using credit cards, may I say~ Kudos to you... Smart spending pays off in the long run...
Answer by Gal51 at 3:23 PM on Nov. 30, 2010
Answer by Scuba at 2:12 PM on Nov. 30, 2010
Answer by tinamatt at 1:49 PM on Nov. 30, 2010
i have not used mine in 4 yrs...i havent paid them either. they've sent me to collections and harrassedme for a while but theyve quit. I'm not afraid of them coming after me or anything...I (myself) have nothing they can really take. My dh..is paying his off..has not used his in a year..he still has about 3 years to go though before he is completely out of debt. When that is done though we will never touch credit cards again.
That isn't harrassment just trying to collect from you. You are a thief basically for not paying back your debts.
Answer by Anonymous at 2:02 PM on Nov. 30, 2010
Answer by older at 2:17 PM on Nov. 30, 2010
Answer by tony1638 at 3:49 PM on Nov. 30, 2010
Answer by Shanna84 at 1:52 PM on Nov. 30, 2010
Answer by lovinangels at 1:53 PM on Nov. 30, 2010
Answer by Anonymous at 1:54 PM on Nov. 30, 2010
Answer by Anonymous at 1:49 PM on Nov. 30, 2010
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