September 10, 2010

Americans Use Debit Cards

Credit card troubles are plaguing many Americans these days as the economy continues to struggle. And one way many citizens are dealing with the threat of debt by switcing from credit cards to debit cards.

"Consumers are turning from one form of plastic to another, Credit cards are falling out of favor as cardholders become more cautious and look for more conservative payment methods."

Many financial advisors recommend making this swtich, as debit cards do not have the same risk of incurring debt and penalties.

Americans Use Debit Cards

Americans are shunning their credit cards and using debit to avoid incurring more debt, said Javelin Strategy & Research. Total payment volume for debit cards surpassed credit-card volume for the first time in 2009 and will continue to eclipse it in 2010, according to a report released Wednesday by the Pleasanton, Calif.-based market-research firm that specializes in financial services. At Visa, the world's biggest payments network, the total payment volume for debit cards increased by 7.9 percent in 2009 to $883 billion as credit-card volume declined by 7.3 percent to $764 billion. Volume for debit cards at No. 2 MasterCard rose by 5.8 percent and 2.8 percent at No. 4 Discover Financial Services.

Americans Use Debit Cards

Posted at September 10, 2010 11:00 AM