But Gibbons said government regulators have to use caution in some areas. And they say that might not be such a bad thing. Eventually consumers start spending again. Jim Smith, an economist and finance professor at UNC Chapel Hill, agrees that the economy would lag initially if consumers slowed credit card purchases. But he believes that the economy is better off in the long run if consumers lean in the direction of investing.
Investment leads to greater productivity, which boosts incomes.
Individual is responsible In the end, experts emphasize, consumers must take the responsibility for using credit wisely. Some people are considering drastic changes. Inspired by several recent best-selling books, they're exploring lifestyle simplification, a movement to reduce spending, pare down possessions and concentrate on more meaningful pursuits, such as volunteer activities. Elaine Stover, a Greensboro woman who conducts seminars on simplification, said she sees a growing number of Carolinians who are determined to get out of credit card debt. She doesn't necessarily advocate giving up credit cards entirely.