What started as a temporary shift in our spending habits could become permanent. More and more consumers are 
trading their credit cards for good, old-fashioned, cold hard cash or simply cutting their spending altogether, signaling the end of plastic as we’ve always known it.
This new attitude in consumer spending (or non-spending) can be attributed to a few factors, not the least of which are the ever-increasing credit card interest rates and mounting household debt. Even with President Obama’s new Credit CARD (Card Accountability, Responsibility, and Disclosure) Act, it’s likely that our collective dependence on plastic currency will soon ease up. Consumers are starting to follow experts’ advice and are re-evaluating their spending priorities. They’re also getting back into better financial shape by making some important changes:
Reducing Credit Cards. Many families have cut their number of credit cards; some significantly. Up until recently, it wasn’t unusual for the average family to have four or five cards, sometimes more. Both families and individuals are seeing the sense in consolidating and having only a few cards. Some are sticking to using them for emergencies; others are working on paying off their existing debt and planning to cut them altogether.
Staying Close to Home. Rising gas prices and tighter household budgets have kept many consumers close to home over the past year, making “quality time” more popular than ever. Rather than spend limited funds on dinners or movies out, more folks are inviting their friends over for dinner, movies, or a Game Night.
Cutting Unnecessary Spending. People are simply adjusting to making do with less; much less in some cases. By most accounts, the Shopaholic Era is over—welcome to the era of the Frugal Shopper. Consumers are developing household budgets and sticking to them; although not always popular, families are making some difficult cuts in order to save some money each month. Fancy cell phones and their expensive calling plans are becoming a thing of the past, as are clothing and accessories by top designers and the latest “must-have” video game system or other electronic gadget.
More Inexpensive Tastes. Designer labels and brand-name grocery products are losing ground in favor of price, durability, and shelf life. Discount grocery stores, wholesale “club” stores, and mid-level department stores are doing a booming business as consumers try to get as much for their money as possible.
Comparison Shopping. Consumers are getting smarter about making large purchases—more are starting to shop around for better deals and lower prices rather than impulsively buying items they can’t afford. Houses, cars, furniture, jewelry—people are holding off and waiting for better deals like never before.
Looking Ahead. Though an accurate crystal ball has yet to be developed, folks are taking matters into their own hands and gazing into their financial futures and starting to plan accordingly. Consumers are beginning to realize the importance of savings accounts, retirement accounts, checking accounts with more than a few dollars in them, and overall financial responsibility.
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