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

As a consumer focused site, we like to help you out with some money saving tips for the holidays to keep you away from using those credit cards. This is the time of the year when putting the “holiday” credit cards in a box in the closet is probably your best option.

1. Hide your credit card. If you can’t afford to pay cash for it, then you probably can’t afford it at all. Do whatever you can do to avoid using your credit card to pay for holiday gifts. It’s extremely difficult, we know, but if you’re already on the road to debt relief why dig out some deep potholes and valleys in that road? If you don’t have the money, now is not the best economical time to be spending what you don’t have.
2. Look for deals. Buying the Sunday paper might seem like a waste of money to some people, however that $1.50 could save you hundreds in coupons and sales. The coupons will be mostly for you, but the advertisements for sales in your neighborhood could save you hundreds on your holiday shopping. Be patient, but also ready to pounce when you see a good deal. And remember to always, always take the advertisement with you to the store. By taking the advertisement with you into the store you can be sure to get the right price.
   1. Keep in mind that you can always take the advertisement to another store and ask them to beat the price. This might take some patience, but it will save you money. Most retail stores will beat competitor advertised prices, so do your homework before you go out for your holiday shopping and get the best price.
   2. Don’t forget the advertisement.
3. Black Friday shopping. Most people avoid Black Sunday at all costs. The crowds and aggressive shoppers can be a bit too much for many; however the deals that you can accrue on Black Friday might make the battle worth it. If you have the courage to face the masses and get up before the sun the day after Thanksgiving, you might actually walk away with some great deals. But, like everything else, DO YOUR HOMEWORK, and read all the advertisements to be sure that you hit the right stores and get the best deals.
4. Don’t be afraid of thrift stores. If I’ve said this once, I’ve said it a million times. Thrift stores are a great find. Stores like Goodwill are great resources for amazing deals. While everything is already marked down considerable, hit these stores on their discount days to pick up holiday gifts for next to nothing! Sure, these items are used and might not be brand new, but what better way to find something with a bit of character? Looking for some new outdoor furniture, wall décor, or kids’ toys? These stores are a great place to pick up inexpensive items that are still in great condition.
5. Avoid store credit cards! This holiday season there will be hundreds of stores advertising no payments, no interest, no fees, no worries on their store cards. This is a great way to buy as much as you want for nothing, feel great about the presents that you get your family and friends, and then end up in massive debt only a few months later when the ‘no interest’ months race by. This is also a great way to end up getting nothing for anyone next holiday because you’re strapped in debt paying for last year’s gifts.
   1. Store cards are never a good idea; unless you already have the cash set aside to pay them off and are looking to build up your credit. I would never suggest getting a store card simply for holiday purchases.

The big way to stay out of debt this holiday season is to DO YOUR HOMEWORK! Seriously, take your time, be patient, and start early. The best way to avoid using your credit card on holiday purchases is to buy what you can afford. And the best way to buy what you can afford is to dig a little deeper into the newspaper, online, and thrift stores. The deals are out there, you just have to have the patience to find them. Good luck!

And don’t forget, if you do get into trouble this holiday season we are always here to help you out with no upfront fees and no hassle. Serioulsy, give us a call to find out. 1-877-386-3603