Monday, November 29, 2010

Consumers Turn to Prepaid for a Debt-Free Holiday Season

Judging by the lines outside of Walmart and Target this Black Friday it seems as if consumers are en route to spending the same if not more money than they did last holiday season. What's interesting is that consumers are moving away from creating more debt by staying away from credit cards. If you don't believe me you can take a look at these two different reports that proves this theory.

This article in MarketWatch discusses how a recent online survey conducted in November by Harris Interactive for Green Dot finds that most holiday shoppers are shunning away from using credit cards as their primary payment source. The biggest payment sources this holiday season are prepaid cards, debit cards, checks, and cash. It's evident that consumers want more financial control and are making strides in creating a debt-free holiday.

A separate study conducted by the Consumer Federation of America detailed in this article on CreditNet shows most consumers showed an uncertainty in paying off credit card debt, and this is the reason for the sudden switch. So however you position it consumers will be turning to prepaid cards to avoid hefty finance charges, atm fees, and late payment fees.

Do you plan on using prepaid for that flat screen purchase this holiday season?

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