USA Today reported on the growing trend of consumers quitting their credit card habit: cold turkey.

Although the average person has five credit cards, many Americans are reacting to recent economic trends by cutting off their source of debt creation and living off of cash and debit cards. Revolving credit fell by nearly 20% in November! Indeed, even debit card use has been increasing slowly but surely and has recently started booming (which is great for small business since processing fees are much lower for debit transactions).

Citing aversion to debt, credit card naysayers may suffer incredible backlashes when attempting to do basic things such as renting a car or securing a car loan. Since most of these require checking credit history and FICO score, people without a credit history will be denied, or may require enlisting a cosigner who has a good credit history.

An interesting case study is the young Baker family, whose desire to live a simpler life, free of the chains of debt led them to sell most of their assets, pay off their debt, and travel the world. Follow their adventures here, on their blog.

Another reason for opting out is incredulity at the unfair practices of credit card companies, although their abilities to raise interest rates whenever they feel like is soon coming to a close with the start of new legislation designed to curtail abusive practices. The days of increases to 20% or 30% may soon be over, but credit card companies are gauging consumers and getting the most they can in the remaining days.

Responsible credit card use is of course the desired outcome, but many consumers feel the lure of high spending limits is too much to handle and are instead choosing to go the abstinence route.

Image thanks to http://www.flickr.com/photos/82386510@N00/2977425354/