Released: July 31, 2008

Americans reduce credit card spending

Source: Jonathan Stempel, Reuters (USA Today)

Americans in all age and income groups have reduced credit card use and cut spending on non-essential items as oil and food prices soar, home prices sink and lenders tighten credit, a new study shows.

Thirty-seven percent of consumers said they have reduced spending on credit cards, while just 10% said they are spending more, according to the study released Wednesday by Javelin Strategy & Research of Pleasanton, Calif.

Meanwhile, 54% of consumers said they plan to spend less on “discretionary” or luxury items, while a mere 5% plan to spend more. The percentages of consumers spending less were even higher among consumers aged 35 to 64.

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