The use of debit cards has markedly increased since the recession that began in 2008. Conversely, credit card use has lessened despite the fact that a healthy rebound from the recession has seen dramatic spending increases by the average consumer. This is all according to a survey of more than 600 Texans by SWACHA, a Dallas-based not-for-profit electronic payment association.
According to the report, debit card use first eclipsed credit cards during the recession when credit card companies tightened up their lending policies. But even with more spending, consumers are sticking with the debit cards, with 21 percent of Texans using debit cards daily compared to only 14 percent using credit cards. Additionally, 46 percent of respondents say they pay the balance of their credit cards off every month and another 20 percent say they pay it off in full most of the time.
Personally, I have found this to be true of myself, particularly since 2008. Like many, I went through a tough time paying bills as my business's revenue dipped. I found myself fairly deep in credit card debt. Selling my house afforded me the opportunity to wipe it out, thankfully, and I have used credit cards sparingly ever since.
The fact that this survey shows fewer people using credit cards as opposed to debit cards, frankly, seems extremely positive. One of the best ways to keep the country out of debt is to keep yourself out of debt. If this survey is indeed indicative of most Texans, it's a good sign for our economy.
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