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I am seeing an incredible increase in cash vs credit card sales.

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TomInTib Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:25 PM
Original message
I am seeing an incredible increase in cash vs credit card sales.
While our retail sales are pretty much sucking air, I have seen cash sales outpace credit card sales for the first time, ever. And I am in one of the wealthiest areas in the country, in a high-end retail Gallery.

I have rarely had to go to the bank for change more than once a month. Now, I go almost every day.

This must mean something.
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glowing Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:26 PM
Response to Original message
1. Means the credit is at the limit.
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mike_c Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:27 PM
Response to Original message
2. folks are maxed out?
I dunno-- I don't use consumer credit cards, so when I shop in your store, it's cash or debit, only. If I don't have the dinero, I don't shop!
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:27 PM
Response to Original message
3. Credit limits are being reduced?
or people are finally realizing that adding MORE to their balances may not be a great idea:)
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hughee99 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:48 PM
Response to Reply #3
15. I got a letter yesterday that mine was being cut in half
It wasn't a big deal for me since I was nowhere near even half of my limit, but my limit is half what it used to be.
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pnwmom Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:49 PM
Response to Reply #15
16. Unfortunately, it will affect your credit, because the higher your unused
credit, the better your credit rating.
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hughee99 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:56 PM
Response to Reply #16
18. It's unfortunate, but I'm not overly concerned in the short term.
My new year's resolution was to pay the thing off anyway and I'm not planning to buy anything I'd need a good credit rating for in the next few years (a house, car, etc...), by then, the markets will have rebounded and credit companies will be automatically pushing up my limit again like they were a few years ago.
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Donnachaidh Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:28 PM
Response to Original message
4. good -- people need to stop using plastic.
The banks and credit card companies have been squeezing every last nickel out of their customers. Let THEM know that people are waking up.
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uppityperson Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:30 PM
Response to Original message
5. Perhaps like me are watching closely what we spend.
Saving plastic for emergencies.
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lunatica Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:34 PM
Response to Reply #5
8. I agree with your assessment
Fear of being destitute. Keep the credit cards for emergency food or medical bills.
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Raine1967 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:30 PM
Response to Original message
6. I think it means that people are finally getting the Memo.
Don't buy more than you can afford,

if you have cash -- use it. I think people are realizing they cannot go further into debt -- and finally they are seeing that a credit card is just that -- debt.


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Ilsa Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:38 PM
Response to Reply #6
12. No more debt for us. Only cash, except for some internet purchases
and those will be paid off ASAP. We are choosing to live with less "stuff" and save more. We know we are fortunate in that regard, and have shared with several charities. I hope we don't end up relying on them later.
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:57 PM
Response to Reply #12
19. CDYNPO Master Card and CDYNPO Visa cards
Edited on Thu Dec-18-08 06:57 PM by SoCalDem
Crushing Debt You'll Never Pay Off..

Like the warning on cigarettes, Credit cards shoudl have a warning on them too:)
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BeFree Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:40 PM
Response to Reply #6
13. And deflate the economic bubble: POP!
For years our economy was debt based. Take away that floor and we see it fall.
It is a question how far it will fall. Some employees are still being paid. Retirement checks still come in.
As long as inflation holds off we may see a new floor soon. Inflation and all bets are off.
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phantom power Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:34 PM
Response to Original message
7. Yes, it means the credit market is frozen.
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Ilsa Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:35 PM
Response to Original message
9. Some of us don't want to go into debt. I have plenty of available credit
on several credit cards. In fact, I need to close one of them. I just don't want the debt, so I have used our debit card for almost everything for Christmas.
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walldude Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:36 PM
Response to Original message
10. Not only that but many "credit cards" are really just "check cards"
and are pretty much the same as cash. I have no credit cards but I use my Visa check card for everything.
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stevietheman Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:59 PM
Response to Reply #10
20. I even use my check card as a credit card to get "points" from my bank,
which I can redeem for any of a range of nice gifts.
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Warpy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:36 PM
Response to Original message
11. People know their interest rates can be jacked up on a whim
and they'd rather write a check than risk paying 29% interest on something, especially something from a gallery.
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Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:43 PM
Response to Original message
14. Because people tend to do exactly the wrong thing at the wrong time?
If we are indeed heading into the next great financial collapse as so many (including myself) have predicted, the next year or three will be another "cash is king" era. So naturally people, worried about accumulating debt, will deplete their cash reserves before going into the bank's pocket.

Kind of like everybody knows that "buy low, sell high" is the first rule of profit, yet they invariably buy at the top of the market and try to sell out, with everybody else, when it is down. I've seen it over and over, and done it myself on occasion.
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stevietheman Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 06:54 PM
Response to Original message
17. I think a lot of people are paying off their debt, and some are even deciding to go without debt...
at all. I am currently debt-free myself. Zero debt -- and nobody controls me.
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PeaceNikki Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-18-08 07:32 PM
Response to Original message
21. Not the trend I'm seeing.
I am an analyst for 350 retail stores, though we process all debit cards as credit cards.

But, here's 6.5 months worth of data:
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