Consumers turn to cash instead of more credit card debt

Despite consumer spending climbing 2.2 percent so far this year, none of the four major credit card issuers in the U.S. have seen a marked increase in the number of transactions they process, according to a report from Smart Money. Visa, MasterCard, Discover and American Express have all reported lower or steady rates of purchases involving credit card debt.

However, debit card use is expected to expand somewhere between 8 and 12 percent by the end of the year, and the dollar amount spent on these cards is up 15 percent, the report said. Meanwhile, the amount put on credit cards has risen just 1.9 percent. One credit expert told the site consumers have increased their cash spending largely because they are leery of dealing with additional credit card debt.

People have made a greater effort to reduce their credit card debt recently by paying more into their accounts every month and spending less on their cards.