Saturday, December 11, 2010

Cash or Credit?

It has been discovered that many Americans are worried about trying to stay away from going into debt and paying for the upcoming holidays with cash! ABC stated that millions of Americans have actually chosen to cut up their credit cards since last year’s holiday season.

 We are seeing most of this change in behavior because of the fact that card companies have severely clamped down on the availability of credit, but some can't help to wonder if it is because we as Americans are starting to change our ways. Are we finally seeing the damage that has been done and are attempting to use credit cards in a more healthy way?

Now on a twist of that are credit card companies starting to “feel the burn” of these changes? It seems to me that their marketing strategies are changing to try to reel their “best” customers back in. They have promoted new card rewards programs and other incentives to attempt at gaining some back, but they may have to do better than that because it looks like a lot of Americans have learned their lesson.

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