Image Courtesy of SqueakyMarmot
According to an article in Sunday's, Atlanta Journal-Constitution, retailers are expecting consumers to reduce their use of credit cards this holiday season. Most people plan to use cash for their holiday purchases. What? Is this a new concept? People actually be spending their own money for gifts this holiday season?
Because of the credit crunch, more banks have cut back on credit card offers at the same time consumers are cutting back on purchases. In my opinion, if there is any good that will come out of the credit crunch, it is that people are starting to realize it is a bad idea to spend money that does not belong to them. If you don't have the ability to pay cash for a purchase, you probably should not be making the purchase; especially, if it is for a want and not a need.
Credit card issuers have also started to get better about who they issue credit cards to. For the second quarter of 2008, compared with the second quarter of 2007, most of the top credit card issuers have reduced the number of credit card solicitations they send out.
According to Synovate Mail Monitor, solicitations by HSBC are down 54%, Citigroup is down 45%, Discover is down 33%, Chase is down 9%, Bank of America is down 3%. Some issuers such as Washington Mutual and Capital One have actually increased the number of solicitations they've been sending out.