I read an article the other day on CNN that cited the decreased use of credit cards. It seems that people aren’t using credit cards as much as they have in the past. Personally, I couldn’t live without my plastic, as long as I keep up with the bills, but a lot of people, especially with rising fiscal constraints from gas prices and mortgages are turning to cash more and more to keep their finances straight and true.

It makes sense that people would switch to cash as a way to keep down their expenditures. Credit cards are easy and convenient, which makes them good for people on the go, but more difficult for people who like to micro-manage their budgets. Personal finance experts have been touting cash only accounting as a strategy for years. Corporations tend to appreciate it as well, since they don’t have to pay the transaction costs for purchases…just ask any McDonalds employee why they look a little glum when you pull out your VISA to pay for a .95 cent cheeseburger. Personally I always feel a little guilty.

It is interesting to note however that credit card use has been on the rise in recent years over checks and cash, so I’m a little skeptical as to how important this statistic is to the overall economy.

Check out the article at:

Credit Card Use Down