There's a view held by many that the effects of the recession will last for many years into the economic recovery. The rationale goes that recent tough times have sobered consumers who now have a better appreciation of what's important and are only willing to spend on items that meet their new definition of value.
Among the lessons tough times have brought is the importance of reining in debt. For many, that means using credit cards less frequently or not at all.
According to a study by BIGresearch for the National Retail Federation, the number of consumers who will use credit cards to buy holiday gifts this year will be 28.3 percent, compared to 31.5 percent in 2008.
Silvio Tavares, senior vice president of industry relations for First Data Corp., told The Wall Street Journal, "Consumers are preferring to use their PIN debit card as compared to credit or even cash."
"Some people are just maxed out on their cards," Gerri Detweiler, a personal-finance adviser with Credit.com Inc., told the Journal.
Discussion Questions: Does a three percent downward shift in credit card usage from last year to this represent a big shift in consumer purchasing behavior? What are the implications for retailers should consumers reduce credit card usage?