Credit card debt-laden consumers find alternate ways to pay
FICO has released estimates that show more consumers have been forced to get away without using credit cards. Approximately 20 million Americans have little to no credit history on file, while nearly 30 million people have poor ratings due to existing credit card debt. This means that more than 50 million consumers across the country have to get by without access to credit.
Main Street, a financial news site, found that many American choose to steer clear of credit. Some consumers view credit cards as gateways to debt that create more problems than they solve.
“I am against the use of credit cards,” New York resident Scott Gamm told the site. “Credit cards allow us to spend money frivolously. By not using credit cards, you don’t have to worry about late fees, inactivity fees, high credit card interest rates and, most importantly, accruing debt.”
Financial analysts recommend looking into prepaid cards for purchases that require the use of credit. Money orders are another option for consumers who don’t want to carry a large amount of cash on them for big transactions.