Numbers have shown that this year, Americans have spent more money through debit cards as compared to credit cards. This is the first time that it has ever happened, and the reason may be tighter restrictions on credit card holders and greater fee.

Moreover, consumers are expected to spend $1.64 trillion in the next year using their debit cards

But could debit cards be the new way for banks to make more money?

Debit cards usage is expected to grow more in the coming years. The high interest rates and the bad economy has made Americans reluctant to take on more debt. Also, as the new federal legislation takes effect next year, banks are expected to become more stingy with credit cards, which could make the debit card the preferred form of payment for many consumers.

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Even in this difficult time, credit card companies have been seen increasing interest rates on unwary customers throughout the country. Moreover, there is no limit to the rise in rates, as some customers have even had there rates doubled.

Earlier this year, when the Congress passed the legislation to protect consumers against unfair practices, many banks started making changes to their credit card terms. This was done because once the law is enforced; it will prohibit banks from increasing interest rates unexpectedly on existing balances unless the debtor is more than 60 days behind on payments.

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