It seems that more and more people have decided to cut up their credit cards and to pay down their debts rather than continue the buying spree. Apparently, the banks are not happy about this.

The reduction in revenue from new purchases, combined with concerns about new delinquencies, pose big worries for the credit card industry, (James) Van Dyke says.

“Credit card companies are running a bit scared right now, and for good reason, because people are having a difficult time paying off their balances; and everyday consumers, they’re cutting into their purchases right now — both luxury goods and even the basic necessities,” Van Dyke says.

According to the Javelin study, nearly 70 percent of financial institutions say they have cut back on credit card solicitations. Six of 10 say they are limiting the amount of credit offered to customers.

Of course, the Federal Reserve has decided to continue to inflate the value of worthless mortgage securities, and the government will continue its “credit-card” habit until it brings down the entire economy.