May 01, 2009 -- Two examples of how we're changing our spending habits
Americans have changed their spending habits on a dime. Want proof? Clark has a couple of strong examples to share with you.
First, our credit card usage has greatly declined. For the first time ever, the amount purchased on debit cards exceeds the amount purchased on credit cards.
Our collective debt on credit cards is finally under $1 trillion. In fact, it's now $995.7 billion to be exact, according to a recent Federal Reserve report. That's a very positive move.
Of course, Clark has had a longstanding beef with debit cards because they carry very weak protection for consumers versus credit cards. But if using a debit card means that you're spending only what you have, then he's all for it.
Remember, if you live on less than what you make, you reduce the level of anxiety in your life. Do you really want to be that person with the "I owe, I owe, so off to work I go" bumper sticker for the rest of your days?
In another positive example, Americans who thought that Wal-Mart was beneath them are changing their ways too.
The average Wal-Mart customer has a salary of $30,000. But now, the retailer is seeing a surge of new customers with salaries of $50,000. The urge to save has hit us at all income levels. And as a result, sales at Wal-Mart are up because those with salaries of $50,000 spend 40% more than someone who earns $30,000.
