I was surprised, and happy, I’ll admit to read in Yahoo Finance that more than 8 million consumers stopped using credit cards in the last year.

Written by Eileen Aj Connnely, an AP Personal Finance Writer, the article details the decline as

a combination of consumer choices and bank actions.  [bank actions being lowered available credit and closed accounts]

And, she goes on to say

TransUnion found . . . the use of general purpose cards such as MasterCard and Visa, Discover and Amex, fell more than 11 percent in the third quarter of 2010, compared to the third quarter of 2009.

While I was in the business of finance for many years, in residential mortgages and securities finance, I found the overuse of credit cards to be frequent in homebuyers, so I’m happy that the American population has found a way to ‘just say no’ to instant gratification.

Are you sure you want to do that?

The worst case I ever saw was a purchaser who had NO money for a down payment or closing costs, so he was going to have the seller pay the closing costs and he wanted to make the down payment WITH A CREDIT CARD.

He did not take it kindly when I suggested perhaps he could not afford rental property if he was going to put it on his VISA.

Reduced Debt at Year’s End?

Well, some of the population has slowed down.  We’ll see what is reported for the fourth quarter, after everyone buys Christmas.

Read the full article at More than 8 million drop out of credit card use