America shifting to cash payment style

According to recent observations an increasing number of Americans trying to gain control of their finances in the current credit crisis shift to cash as a more convenient payment option.

As reported by Marshall Cohen, chief analyst at the market research firm NPD Group 11% of consumers say they expect to use less credit this coming holiday season. He notes that the figure may grow in view of continued tightening of credit.

Restaurants and retailers already felt the change occurred to customers’ behavior. Gary Bologna, Chief Operating Officer of Alicart Restaurant Group, which operates several restaurants in New York City reports that more and more customers give preference to paying with cash at both Virgil’s Real BBQ and Carmine’s restaurants.

Personal finance experts also tend to advise paying cash for everything in an effort to prevent overspending. Such advocates of the cash-only lifestyle explain that consumers will be able to better manage their spending in an environment that forces them to pay for what they’re buying in cash, rather than put it on a card.

Moreover, online vendors are also among those who allow customers to pay with cash. eBillme, a cash billing service that launched in 2004, reports a flood of interest from online vendors who want to give consumers a cash payment option other than a debit card. According to CEO Marwan Forzley a large number of customers will likely use cash in their effort to control spending.