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SHOPPERS AVOIDING CREDIT CARDS

By Amy Riggin/OF THE COMMERCIAL STAFF
Saturday, December 20, 2008 10:39 PM CST

Pine Bluff shoppers leaving the Wal-Mart Supercenter Friday said they are steering clear of credit card debt this holiday season, choosing to spend cash or use debit cards instead.

In the face of a mounting national credit crisis, federal regulators on Thursday approved new rules for the industry aimed at keeping interest rates in check. Starting in July 2010, credit card companies will be allowed to raise rates only on new cards and future purchases or advances, but not on current balances.

The news was well-received by shoppers interviewed Friday, although most said they try not to use credit cards anyway.

“I have one and it’s for emergencies only,” Matt Vontungeln of Pine Bluff said. “I learned years ago (to avoid using credit).”

Vontungeln also said he is cutting back on holiday spending this year, opting to buy for his nieces and nephews only. He said even those purchases will be chosen more carefully.

“I’m buying something I feel they can really use, like clothes,” he said, adding. “My company is shutting down for three weeks. It’s tight on everybody right now.”

Stephanie Howard of Pine Bluff said she was reluctant to use credit even before the economy began to slump.

“We try to not use our credit cards much,” she said. “We just try to be smart.”

Howard said she has spent “a little less” on gifts this year.

Marcie Stom of Pine Bluff said she hasn’t had to cut back on spending.

“It’s probably about the same, maybe a little more because I have an extra grandchild this year,” Stom said.

But Stom doesn’t often use plastic to make those purchases.

“I just use my card when cash is not convenient but then I pay it off right away,” she said.

Monty Meek of Monticello also has a policy of using “debit or cash” only for his family’s purchases. He said he has reduced spending slightly on his children, but “not on the grandkids” of course.

“Most of that is probably due to the fact that we made a little more income this year than last,” he said. “But next year might be a whole new bag.”

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