Shoppers, wary of credit cards, get creative

NEW YORK (AP) - Shoppers are getting creative this holiday season in an effort to keep their credit cards in their wallets.

By: The Associated Press | WNCT
Published: December 18, 2009

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NEW YORK (AP) - Shoppers are getting creative this holiday season in an effort to keep their credit cards in their wallets.
They're paying with cash or direct debits from bank accounts. They're taking advantage of free financing and even cashing in frequent flier miles.
Layaway also is booming. It's an old-fashioned method that allows shoppers to pay over time, interest free, and pick up their goods when they're paid in full.
A desire to stick to a budget and to avoid higher interest rates have helped drive the shift away from credit cards.
One economist says the new spending behavior is a response to "a very scary economy."
The switch to cash or debit cards often means lower costs for stores. Layaway and other payment methods increase costs, but stores may grab sales from customers who would otherwise not able to buy.

(Copyright 2009 by The Associated Press. All Rights Reserved.)