News 12 at 11 o'clock, December 21, 2009

NORTH AUGUSTA, S.C. ---Millions of Americans are still paying off holiday shopping debt from last year - that's why this year about 72 percent of all shoppers say they're using cash.

According to the National Retail Federation, for some -- shying away from the plastic -- is a way to keep more "paper" in their wallets and to avoid digging deeper into debt. Interest rates on some credit cards are rising and some cardholders pay an average interest rate of 13.71 percent. Some shoppers say leaving the cards at home is one way to ensure they won't be taking December bills - into the New Year.
It's"ash only"- this holiday season for Lisa McGuire, Raquel Navarrette and Heidi Wray Cash, not credit, is their preferred method of payment.
Only 28.3 percent of holiday shoppers say they'll use credit this year according to the National Retail Federation.

"Probably for the past three years we've used credit cards and it's now now we're like, we shouldn't have done that, "says Lisa McGuire. "It is hard to pay all that back."

McGuire is a hair stylist who says she knows first hand the traps of using credit cards.

"If you use credit, you pay on it 3 to 4 years," she adds."I'd rather pay cash and just be done with it."

One of her customers, Heidi Wray agrees. Wray is originally from Munich, Germany. She has a "cash only" philosophy.

"I'm used to paying cash all the time, because I come from Europe," says Wray. "I use a certain amount of money a month and that's all. When it's gone it's gone!"

What's also gone when paying in cash -those high fees and interest.
Interest rates on some credit cards are steadily increasing and some cardholders pay an average interest rate of 13.71 percent.

"The interest is so high, it's getting higher and higher," says Wray.

"The interest rates are going up, the credit card companies are hiking interest rates, your payments go up and it's not easy to get out of it," says McGuire.

With an uncertain economy many shoppers decided this year to forgo using the plastic and using more greenbacks to keep down debt.

"I just get the change; the coins and I put it in the piggy bank,so next year I will have money to use again!"says Navarrette.

"We are just keeping our money close right now our pocketbook!"says Wray.