Credit card or cold hard cash? How will you choose to spend money this holiday season? Many shoppers say they will change their habits and cut back.
Shopper Yvonne Cason is using plastic. "I'm just putting everything on American Express because we get rewards."
It's a debate at the department stores: Put those costly holiday purchases on the credit card or pay on the spot.
"I pay cash," said shopper Irene Gonzales. "The credit cards are real high on the interest. I can't afford to do that now."
Shopper Mildred Villarreal will use cash for her purchases. "I had a good interest rate at 7.9 percent. They sent me one that I have to pay almost 28 percent. That's ridiculous."
At a time when unemployment is high and the economy is still struggling, many shoppers are relying less on credit cards and sticking to a budget.
"We'll still have a good Christmas. There will just be less spending than in years past."
Rob Lieske says the economy has taken a toll on the Christmas wish list. "I don't think we're spending nearly as much in the past for my own kids and family. We are cutting down a little bit."
In fact, retail experts say 46 percent of shoppers will spend less and explore new options in the checkout line, including in-store layaway.
According to the Consumer Federation, the gap between the rich and poor is widening, so families making under $50,000 are more likely to spend much less this year.
