For some consumers, this might be the right time for plastics to exit. The Federal Reserve reports that consumers’ debt on credit cards had been continuously on the decline by more or less 2.25 percent since 2007. The Fed does not attribute the debt reduction to consumer responsibility in paying credit card balance on time to avoid interest rates. The Fed rather points to more people shunning their credit cards as the primary reason for debt reduction for the past three years now.

A survey concluded July by the research agency CreditStats this year revealed that one in every ten credit card holders decided not to use their credit cards anymore. As opposed to consumer responsibility, the consumers have instead become more aware of the consequences of owning a credit card and sometimes the high costs of regularly using one.

Americans, having been affected by the economic recession, have become cautious enough when it comes to their spending according to CreditStats. Consumers are feeling more and more discomfort with high charges and interest rates automatically translating to debts in their credit cards every month.

CreditStats also notes that aside from people becoming more alert or watchful of problems arising from the use of credit cards, the banks which issue the plastics are also part of the main reasons why credit card use has declined over the years.

CreditStats asserts that that the banks have decreased the total available balance that each credit card holder can use upon being issued the plastics. This is a way for the banks to cope with the effects of the economic downturn. This is of course compounded by the fact that they started charging higher fees since then.

CreditStats plans to do another survey on the things banks may do in response. Research analyst Sir Foreman says that knowing what banks might do next is as important as knowing how consumers will also deal with their expenses sans their credit cards in the future.

Recently, there has been a public discussion on why credit card companies are more likely to contend with difficulty staying in the industry. Foreman takes the position that it is far too early to generalize possibilities for credit card companies. He says that what is important for now is that the consumers have made their decisions whether to opt in or out of credit card use. Foreman concludes that there are signs indicating that consumers think they made the right decision.

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