It is quite possible that credit card customers have learned their lesson finally, which could be great news at Christmas time. According to many surveys, the number of people shopping for the holidays with credit cards has come down to the lowest percentage ever since such surveys have been started. Given that around 13.6 million card holders in the country are still paying off the debts from last year`s holiday season, this survey report comes as good news.
There are some obvious reasons for people to be choosing cash or debit cards over credit cards. Those spending with cash have a limit and once the cash has been spent, that is the end of the matter. You cannot buy any more clothes or gadgets or splash on silly articles which you wouldn`t need anyway. On the other hand, credit card holders actually end up buying unnecessary stuff irrespective of whether they really need it or if they have the money to pay off the bills later. For those customers who cannot control their temptation to spend, visiting the malls with cash is a great way of keeping a cut-off that cannot be avoided.
Cash also helps shoppers be more thoughtful and realistic. Those who shop with cash tend to think and take pains over a decision to purchase or leave out certain things, unlike credit card holders who tend to think less on what they are spending. There are studies that have also pointed out that shoppers with credit cards make more impulsive decisions that end up being poor. The impulsive tendencies will also be curbed once shoppers go through the pain of paying out in cold, hard cash which does leave an impression. According to reports from Trans Union, a credit bureau, the percentage of people using credit cards for Christmas gifts has touched the lowest percentage in 27 years. The percentage of those spending with general cards like Visa has also come down by 11%.
After the Thanksgiving weekend, another survey showed that only 17% of the shoppers have actually paid out through their credit cards, which is half of the percentage in the previous year. Interestingly the survey also shows that the gift card is likely to be the most popular gift this season with 77% of customers buying at least one during the current shopping seasons. This could be ironical in one way.