Americans reduce credit card spending -- study

By Jonathan Stempel

NEW YORK, July 30 (Reuters) - Americans in all age and income groups have reduced credit card use and cut spending on non-essential items as oil and food prices soar, home prices sink and lenders tighten credit, a new study shows.

Thirty-seven percent of consumers said they have reduced spending on credit cards, while just 10 percent said they are spending more, according to the study released on Wednesday by Javelin Strategy & Research of Pleasanton, California.

Meanwhile, 54 percent of consumers said they plan to spend less on "discretionary" or luxury items, while a mere 5 percent plan to spend more. The percentages of consumers spending less were even higher among consumers aged 35 to 64.

And 57 percent said they are "more careful" about eating at restaurants, where bills are often paid with plastic.

On Tuesday, the company behind Bennigan's and Steak & Ale filed for bankruptcy protection, joining a few other operators of casual dining chains that succumbed this year as more people chose to dine at home.

"Consumers are getting more cautious and the credit crunch is far from over," said Curtis Arnold, a consumer advocate and founder of CardRatings.com.

Americans in May had $961.8 billion of revolving debt, U.S. Federal Reserve data show, equal to roughly $3,150 per person. The total amount is up about 58 percent this decade.

Card issuers face pressure as credit problems brought about by the housing slump extend into other forms of debt, causing higher delinquencies and forcing even the wealthy to cut back.