Wednesday, October 30, 2013

Debit Cards Set To Take Over From Credit Cards

The first modern credit and charge cards were introduced in the 1950s, and that allowed consumers a cashless luxury to buy now and pay later. Since then, credit cards have also been a source of debate because of rumors and lawsuits centered on unethical and predatory practices by financial institutions. While the shift from cash based transactions to non-cash methods of payment has been a highly visible trend, there are more intricate trends in the global payments industry that are growing at a high rate.

Credit cards are being increasingly viewed with skepticism, mainly due to their high annual percentage rates (APRs) and often vague contract terms, many of which the average consumer fails to understand. It’s no wonder then that the average credit card debt for US households stands at $7,100 as of August 2013, down 1.08% from last year. It is also not surprising that after the 2008 financial crisis, as a result of tightening credit policies, the average number of credit cards held by Americans declined to 1.96, as of July 2013. The average number of cards held by Americans stood at 3.7 in 2009 .Read More: AXP, COF, DFS, MA, V

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