American Credit Card Use in Decline…

July 31st, 2008

According to a study done by Javelin Strategy and Research, the American public is significantly cutting back on their credit card usage in wake of our recent economic downturn.  With less cash to spend, not only are people showing more conservative purchasing habits, but many are having trouble paying off credit card debt.  Here is an exerpt from the report which details the overall findings:

Key Findings in the Credit Card Report:

• 45% of those surveyed say their ability to contribute to savings has decreased.
• 37% of consumers say they are using their credit cards less.
• 28% of those surveyed say their ability to pay off their credit card balance has become more difficult.
• One out of every three consumers said they are buying fewer basic goods.
• 57% of those surveyed say they are more careful about how often they eat out at restaurants.
• 46% of consumers say they are shopping more at superstores like Wal-Mart™ and Target™.

The report is mainly based on data collected from a random-sample panel of 1,500 respondents targeting representative proportions of gender, age and income as compared to the overall US online population. Executive data is based on an online survey collected from a sample of 13 credit card industry executives at top tier credit card issuers in May, 2008.

For more also look to this article by PaymentsNews, which interviews some head executives from Javelin for further insight. 

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