Study: Cautious consumers using cash, not credit

VANCOUVER (NEWS1130) - Move over credit - a new study shows cash is becoming the payment of choice for cautious consumers.

U.S. numbers from Javelin Strategy & Research show credit card use has dropped by 31 per cent between 2007 and 2009, which is re-shaping the way we pay.

We hit the streets and found a lot of shoppers fit that bill, like this man we spoke with. "I got rid of my credit card and I'm using a pre-paid credit card for online stuff. That way it's almost like I'm making the deposit to it so I can use this online, but I don't get into using credit."

Those that are still using their credit cards just as much tell us it's those rewards points that are luring them on; there's nothing like a free flight to ease the guilt of racking up that credit.