The percentage of shoppers using credit cards is expected to fall 10.2% from last year, with 28.3% of consumers using credit this year, down from 31.5% a year earlier. Debit-card use is expected to rise, but these cards are less profitable for banks. (Wall Street Journal)

That poll was taken before the infamous Black Friday holiday. In another poll, conducted by Reuters, Back Friday shoppers did indeed use more cash this year. Only 26 percent of all shoppers interviewed actually used their credit card to make purchases.

Things are definitely turning around for the American consumer. It may be a slow turn-around, but consumers are becoming smarter and more financially responsible. The credit card numbers above only prove that point, and with that small number comes more fears for the credit card industry.

Credit card companies have taken some huge hits in the past year, and this is just another to add to the pile. With the Credit Card Act of 2009 about to take effect and limit credit card companies’ abilities to raise rates and charge ridiculous fees, that small percentage above means less revenue as well. With less people making purchases on their credit cards, that’s less money going to the credit card companies in way of usage fees.

Even the Fed has taken its stance against credit card companies by running ads to help consumers avoid any credit penalty fees. These ads are currently running ahead of movie trailers in metropolitan areas to remind consumers to be smart and financially responsible with their spending habits.

Hopefully you were able to avoid that plastic habit and use only cash or your debit card this year, but, as always, if you fear you might have gone too far on Black Friday, visit give us a call anytime and we’ll try to help you out!

Are you saving your holiday shopping for the big sales? Maybe waiting for Black Friday before you open that wallet up for friends and family? Well, you’re not alone. Everyone is saving, searching for the best deals, and being more financially responsible with the little budget they might have for holiday shopping.

While a steady decline in sales since last October has slightly leveled off, amazingly sales of electronics have gone up, as well as online sales. It’s no surprise that online sales are increasing, now that consumers have become both more financially responsible as well as more internet savvy.

Another big seller, if you can say ‘big seller’, this Black Friday will be ‘gifts of lasting value’, as the Wall Street Journal says. Besides shopping for bargain, consumers will also be looking for practical gifts that will last. With unemployment rates at 10 to 15 percent in some places, it’s not really a surprise that consumers are looking for quality items that can withstand the test of time. Who knows what will happen in the future with this economy?

“Retailers have to dig deep and pull out their A-game right now, because it is a very competitive environment,” Mr. Snyder said. “Whereas you might have given something more trendy in the past, a down comforter is relevant to what is happening right now.” (WSJ)

So, how do you keep your holiday spending within reason this holiday season? It’s all about how you pay.  Cash is always best, and while many more consumers will be using cash this year because they’ve learned financial responsibility, many will still use their credit cards. If you must use credit, chose the card with the lowest APR. If you have the funds coming in to pay off your credit spending within a reasonable amount of time, put all your holiday purchases on one credit card, preferably the one with the lowest APR and highest available balance.

But, you say you want those amazing deals that you can only get with a store credit card? Well, then get it, but make all of your holiday purchases with that card at that store. Don’t use another credit card for another family member at another store. This is how the domino effect takes over your credit debt.

This store may have a great deal for Uncle Buck, but that store has a better deal for Aunt Petunia. How can you possibly pick one relative over the other, one store credit card over the other? You’re going to have to if you’re working to keep your credit balance and debt low. Chose one store that you want to get the best deals from, and do all of your holiday shopping at that single store. This will help you stay out of debt.

Sure, you can use your credit card during the holidays, if your financially responsible and completely able to pay off what you spend within a short period of time. If you do get yourself into trouble, give us a call at 1-877-386-3603