The number of new credit card accounts is down 46%. Why? People don’t trust the card companies, or themselves. Also: interest rates of 30%.
USA Today reports that as of October 2009, the number of new credit card accounts was down 46% compared to the year before. People are opting out of the credit card game because they find it easier to avoid debt using cash only, or perhaps cash and debit cards.
Why are people saying no to credit cards? They don’t trust themselves to use credit cards responsibly, and they certainly don’t trust the credit card issuers to behave responsibly. A July survey cited in the story shows that about 50% of credit card users trust credit card companies, national banks, and the federal government less than they did compared to the year before.