Debit trumps credit for 2004 holidays

WASHINGTON, Nov. 16 (UPI) -- More holiday shoppers will pay with debit or check cards than with credit cards this year, the Washington, D.C.-based National Retail Federation said Tuesday.

The NRF 2004 Holiday Consumer Intentions and Actions Survey -- conducted by BIGresearch -- shows 34.7 percent of holiday shoppers plan to pay for their purchases primarily with debit or check cards, compared with 30.7 percent last year.

Conversely, fewer consumers will use credit cards to pay for merchandise this holiday season than did last year -- 29.5 percent versus 30.1 percent. Fewer people will also use cash or checks during this year's holiday-shopping season than they did last year.

"Consumers have been budgeting and planning ahead for the holiday season, so it's no surprise that credit will take a backseat to debit cards this year," said NRF President and CEO Tracy Mullin. "With debit cards, consumers can keep a handle on the money they have to spend without worrying about carrying cash."

The survey, which polled 7,349 consumers, was conducted November 3-10. The consumer poll has a margin of error of plus or minus 1 percent.