Consumers turn to cash rather than credit card debt - Bills.com News

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Consumers turn to cash rather than credit card debt

Tuesday, Nov 3, 2009
By Jennifer Hewitt

A recent report shows that consumers are planning on minimizing credit card debt during this holiday season.

According to the Biz Beat blog from the Atlanta Journal-Constitution, which cited a survey from the National Foundation for Credit Counseling, 68 percent of consumers plan on using cash for their holiday shopping this year.

Furthermore, the 12 percent of respondents who said they would use a credit card for their purchases said they wouldpay off the debt in full.

"Another 10 percent would charge purchases and pay them off over time," the blog noted. "The final 10 percent plan to use layaway programs."

Layaway programs have gotten more popular of late, with many retailers bringing them back as consumers look to shopping strategies that will help with debt relief. For example, retailers like Kmart and Sears have increased the presence of their layaway programs on their websites. Consumers can make purchases on the websites and then have it held at a local retail
location.

Some consumers are also planning on spending less this year. According to a survey from Consumer Reports, 65 percent of respondents said they would not spend as much on the holidays this year, which would include cutting back on gifts and traveling.

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