More shoppers paying with cash over credit

Plastic is out and green is in - when it comes to paying for holiday gifts this year.

One in four shoppers plan to pay with cash this holiday season, according to a survey released today by the National Retail Federation. That's up 9.1 percent from a year ago.

"With many holiday shoppers focused on spending within their limits, it's no surprise that fewer people will be relying on credit cards this year," said Tracy Mullin, president of the federation, a retailers' trade group.

About 42 percent of consumers say they will primarily use debit or check cards, a 2.5 percent hike from last year, the survey found.

The number of shoppers who will rely on credit cards is expected to fall 10.1 percent with 28.3 percent of people using credit this season.

Consumers age 65 and older are most likely to use credit cards, while shoppers age 25 to 34 are more likely to buy with cash or use their debit card, the survey found.

Credit card usage is expected to stay weak until unemployment begins to fall, economists say. The unemployment rate last month hit a 26-year high of 10.2 percent.

And just how much shopping have consumers done this season? Not a lot. Despite talk of low inventory, 52.4 percent of consumers have not yet started their holiday shopping, according to the survey, and an additional 21.2 percent said they have completed less than one-tenth of their list.

Economists expect that many shoppers are waiting for deals and bargains that traditionally start the day after Thanksgiving.