Debit Card Use Rises Dramatically As Credit Card Delinquency Rise to Record Levels

[ByLoSellHi]

Let's see how long those savings last.

The rising use of debit, which is linked directly to checking accounts, has helped the company overcome shrinking U.S. retail spending caused by worsening unemployment. Visa reaffirmed in February guidance that earnings per share will rise at least 20 percent this year.

“We’re still seeing growth in debit,” said James Friedman, an analyst at Susquehanna Financial Group in New York with a “positive” rating on Visa. “People are delinquent on their credit cards, so they’re more inclined to use debit for nondiscretionary purchases.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=akjtQCGdKJHw&refer=home

 

[Spooz Top]

this appears to be a more responsible form of payment for the consumer.....spending what they have vs. what they don`t.

 

[ByLoSellHi]

Quote from Spooz Top:

this appears to be a more responsible form of payment for the consumer.....spending what they have vs. what they don`t.

I agree...necessity breeds responsibility.

That necessity is without doubt an ominous sign of the level of real consumer spending going forward, however.