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Are you one of the 8 million(+) who have stopped using credit cards?

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...


Asked by grlygrlz2 at 1:48 PM on Nov. 30, 2010 in Politics & Current Events

Level 39 (106,530 Credits)
This question is closed.
Answers (59)
  • Yup ... payed off my last CC about a year ago ... I refuse to fall into that trap again.

    Answer by Gal51 at 3:23 PM on Nov. 30, 2010

  • I use my debit card for the most part, but when I online shop I use credit cards. Sometimes I will also use a card if I get additional savings by using it (Macy's does this, as does Dillards and JCPenney). When I use cards I pay them off immediately with on-line bill pay. I'm sure my card companies hate me, sometimes they'll get several payments a month :)

    Credit cards aren't "bad," people get into trouble when they use them to live beyond their means.

    Answer by Scuba at 2:12 PM on Nov. 30, 2010

  • Yes. I use debit only.

    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 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

  • I have at least 20 of them that if and when I use I pay off right away, so I have never had debt of any kind, including no mortgage

    Answer by older at 2:17 PM on Nov. 30, 2010

  • We use credit cards almost daily for all our purchases and pay off the balance every month. I have not paid any interest on our credit cards for over 10 years. We also get a rebate monthly that adds up to over $700 per year.

    Answer by tony1638 at 3:49 PM on Nov. 30, 2010

  • I no longer own credit cards. Haven't for 2-3 years.

    Answer by Shanna84 at 1:52 PM on Nov. 30, 2010

  • I have a bank card with a Visa logo. it's not credit based though.

    Answer by lovinangels at 1:53 PM on Nov. 30, 2010

  • I use my credit card daily but I pay it off every month and never in the past 25 years paid a finance charge or lick of interest. I would never spend what I don't have like so many do.

    Answer by Anonymous at 1:54 PM on Nov. 30, 2010

  • I used to have credit cards, but hubs and I paid them off and cut them up and I have been credit card free for a few years now.

    Answer by Anonymous at 1:49 PM on Nov. 30, 2010