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Fearing customers may choose to stick with cash, debit cards and prepaid cards, many lenders are rolling out offers that give them extra points, deeper discounts and other bonuses, according to a report from Dow Jones News Services. Some of these additional benefits include free gift cards and cashback. Meanwhile, retailers are adding to their loyalty and credit card programs for similar reasons.

"Some card issuers are seeing this as an opportunity to change the game and engage their customers further," Kelly Hlavinka, managing partner at Colloquy, a loyalty marketing research firm in Fort Lauderdale, Florida, told the news service.

The National Retail Federation believes holiday sales are expected to rise this year despite more meager climbs last year, the report said. However, it's unclear just how large that increase will be as many consumers are still affected by unemployment, and others remain concerned about their credit card debt. The NRF recently conducted a poll that found only 27.6 percent of consumers will use these accounts this season, the lowest amount since 2002.

Some of the bonus offers being pushed by lenders and retailers alike include Toys R Us tripling its rewards points for every dollar of credit card debt taken on, for all transactions both in stores and online, the report said. This comes over fears that the toy giant could be undercut in prices by both Walmart and Target. The latter discount retailer recently increased rewards for its REDcard customers, extending a 5 percent discount on all purchases made with its branded debit and credit accounts in its stores and on its website.

Similarly, every transaction made with a Citi card this holiday season will enter the holder into a contest to win a prepaid card valued between $10 and $10,000, the report said. Discover will increase cash back bonuses to 2 percent on purchases of up to $1,000 made online, and 5 percent on purchases of up to $500 made at restaurants, department stores and clothing retailers.

Many consumers have cut their use of these accounts significantly in recent months, and some have opted to eschew their credit card debt altogether.

Many consumers have been faced with the familiar question more cashiers at major retailers are asking these days, "Would you like to save on this purchase by opening a credit card with us?" According to a report in the Palm Beach Post, some have been wary of taking on more credit card debt in recent years, ever since the start of the national recession. But this has only made retailers make a greater effort to increase the accounts they handle.

Typically, those consumers who have store-branded accounts take on far more credit card debt at the retailer's brick-and-mortar locations and on its website than others, the report said. For example, Target says customers who use this type of account when they shop with the company will spend about 50 percent more over the course of a year than those who don't.

Most stores don't typically offer discounts to those consumers who use their branded accounts to take on credit card debt, the report said. However, they may offer savings of something like 10 percent on any purchase made the day a new account is opened. Sometimes, that temptation can be too much for consumers to ignore.

"It's a battle between retailers and consumers," Kit Yarrow, a consumer psychologist, told the newspaper. "Retailers make more money when consumers spend on their credit cards, so they offer good incentives in a quest to get people to use the store credit cards. It's only natural that consumers be enticed by that, especially at a time when we're more cost-conscious."

Beyond the traditional initial discount, however, many retailers are now offering different incentives, the report said. Some are adding rewards points that will give cardholders a small percentage of their purchase back, which can only be spent in stores. Others are offering everyday discounts.

Many consumers have been avoiding taking on credit card debt in recent months, and have also paid more into their existing balances in an effort to reduce the total amount they owe to lenders.

The amount of credit card debt that had been allowed to lapse into serious delinquency – those behind 90 days or more – at the end of the third quarter was the lowest seen in more than a decade, according to the latest analysis of theindustry by TransUnion. The delinquency rate slipped to 0.83 percent, down nearly 9.8 percent from the previous quarter, and a decline of 24.6 percent from the same period last year.

TransUnion's study also found more than 8 million consumers stopped using their bank-issued general purpose credit cards in the last year. However, this wasn't just as a result of charge offs that flushed high-risk borrowers from the system, though that accounted for some of the decline. Another segment of the population has done so in an effort to curb spending. The survey found that consumers with higher incomes were just as likely as the economically disadvantaged to suspend their use of credit cards.

"The vast majority of the consumers who do not possess or have stopped using credit cards continue to have and use other forms of revolving and installment credit, and of course still need to pay for necessities," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.

Becker added that because many consumers have sworn off credit card debt, a number of credit and debit card issuers have been looking into ways to provide other financial services to these people.

The report noted that Nevada had the highest rate of credit card delinquency in the country at 1.28 percent, followed by Florida (1.09 percent) and Mississippi (1.06 percent). The lowest incidences of this problem were observed in the upper Midwest, as North Dakota (0.48 percent), South Dakota (0.53 percent) and Nebraska (0.56 percent) made up the three best rates seen nationwide. Nebraska, along with Alaska, saw the most significant drops in this problem during the third quarter, with declines of 17.6 and 19.2 percent, respectively.

Many consumers have also reduced the total credit card debt they owe to lenders in recent months without closing their accounts completely. They have done so by spending less and putting more money into payments.

Debit cards are safer than cash and take less time to use when making a purchase than checks, making them an ideal payment option when consumers want to avoid dealing with additional credit card debt, according to a report from USA Today. Like credit cards, they're accepted almost everywhere. But unlike credit, debit carries no interest rates or late fees, meaning it is relatively hassle-free.

As a result, many consumers have turned to their debit cards in recent years, and in 2009, the number of transactions on these pieces of plastic surpassed those on credit cards for the first time, the report said. In fact, 80 percent of consumers own debit cards compared to 78 percent who have credit cards.

For similar reasons, 70 percent of consumers plan to use either their debit card or cash this holiday season, rather than deal with more credit card debt, the report said.

However, debit cards aren't better than credit cards in every way, the report noted. When it comes to fraud and theft protection, credit cards are typically far safer than their counterparts. In fact, according to the American Bankers Association, fraud losses from debit cards climbed to $788 million in 2008 as more consumers used them to make payments. That number is up from $662 million in 2005.

The report said most major financial institutions and debit card issuers offer zero liability policies for instances like these, but not all unauthorized transactions fall under this protection. In other cases, consumers can lose these guarantees if they wait too long to notice or report a theft, or behave in ways their card's issuer views as irresponsible. In addition, even those who are covered may not get their stolen money back right away, as the institution may first conduct an investigation.

Consumers who want to avoid credit card debt have leaned more heavily on alternative payment methods in recent months, and have cut back on spending with their credit cards as a result. Some have also opted to increase the amount they pay into their debt every month to more quickly decrease their remaining balance.

The amount of consumers who say they feel little or no stress about their credit card debt and other outstanding balances rose to 59 percent this year, according to a poll from The Associated Press and GfK. That's up considerablyfrom the 49 percent who responded similarly this time last year. The report largely attributes this increased confidence in Americans' individual financial futures to spending behaviors altered by the national economic downturn.

More people say they pay off their credit card debt every month and make fewer purchases if they don't have the cash on hand at the time, the report said. In addition, 52 percent said they seldom or never worry about their financial liabilities, up very slightly from last year, and for the first time more than half have said so since the question was originally asked in 2004.

"People are essentially adapting to their circumstances," Joseph Sirgy, a marketing professor at Virginia Tech who studies consumer behavior, told the AP.

However, even as some people have had a better time with their various financial obligations, others still face considerable trouble, the report said. About one in eight believe they might never emerge from debt, and 20 percent still worry about their credit card debt and other balances most of or all the time. Another 10 percent think their debt will remain a major problem in their lives for at least the next five years.

Unsurprisingly, the least worried consumers were those that made more than $75,000 a year, the report said. Other demographics expressing less concern about their financial futures were those without children and retired people under the age of 60. The most worried were those with children, the lowest income, or the most education.

These economic hardships and changes in attitude have led many to scale back their holiday shopping, as just 9 percent told the pollsters they will spend more this year on gifts, and 37 percent will spend less.

Many consumers have also said they will avoid taking on more credit card debt this holiday season, opting instead to make the bulk of their purchases with other payment methods, including cash and debit cards.

However, while many are now more cautious about how they deal with their money, there are ways to further ensure the debt a family may compile this holiday season doesn't become unmanageable, according to a report from Bankrate.

The best way for consumers to avoid overspending and ending up with more credit card debt than they intended is to simply set a budget to follow before beginning a shopping trip, the report said. By keeping in mind a certain limit, and by planning the entire shopping duties for the season, consumers can save considerably more than they would have if they just went out without a course of action in mind.

Another way to avoid too much credit card debt after the holidays is to hold a family meeting to discuss shopping plans and air concerns over the budget being set, the report added. If everyone understands the issue, then they will be more likely to handle their shopping duties in a responsible fashion.

In addition, consumers should avoid activities that are geared toward spending money during the holiday season, the report said. For example, even an innocent trip to the mall to pick up one or two things can quickly turn into an unplanned big-budget shopping spree. However, if the shopping center is unavoidable, consumers may find a benefit from leaving their plastic at home so they don't accumulate more credit card debt than they planned for.

Another trap many consumers fall into during the holidays is related to sales and clearances, the report said. Most retailers will offer popular items at slight discounts in an attempt to get people to purchase them, and come into the store. However, this often results in people buying things they wouldn't have normally purchased, which can lead to more debt than expected.

In recent months, many consumers have made a concerted effort to reduce their reliance on credit cards for everyday purchases, and also increased the amount they pay into their existing balance. However, this can be difficult during the holidays as there is more pressure to make large gift purchases they otherwise may not be able to afford.

The majority of consumers say they're in a position to spend as much or more than they did last holiday season due to improved finances, according to a new poll from the Consumer Federation of America and Credit Union National Association. More consumers – 23 percent – said their money situationis better than it was last year, a jump from the 19 percent who responded similarly in 2009.

Because of this improvement, 10 percent said they planned to spend more than they did last year, while another 41 percent believe they will spend just as much, the report said.

"While these results convince us that holiday spending will increase this year – elements of our survey also underline the fact many consumers continue to harbor significant concerns about the economy and their personal finances," said Mike Schenk, CUNA senior economist. "Because of this we expect the increase in holiday spending this season to be modest – roughly half the 5 percent long-run average increase."

The poll also found more consumers are making greater efforts to deal with their debt, and have been successful in doing so. Fewer respondents said they were very concerned about meeting monthly credit card debt payments, resulting in a drop from 12 percent of those polled to 10 percent.

However, those between the ages of 45 and 54 still have particular concern for the health of their finances. Where holiday shopping is concerned, more than half of those in this demographic say they intend to spend less than they did last year, the report said. Another 28 percent said they will spend much less, compared to just 19 percent of all respondents. In addition, 36 percent said they were in worse financial shape, and 14 percent said the problem was much worse.

Of particular concern to this age group was making payments into credit card debt, as 33 percent said they were concerned about being able to do so. All debt payments – including mortgages – worried 52 percent of these respondents.

As a result of this concern, many consumers of all ages have made a concerted effort to reduce their reliance on credit card debt in recent months.

Because of the concerns that come from adding to one's credit card debt, 69 percent of consumers say they will use other payment methods – including debit cards, cash, checks, gift cards and prepaid cards – as their primary option when making holiday purchases, according to an online poll by Harris Interactive conducted for Green Dot.

In an effort to avoid adding to their existing credit card debt, 25 percent of consumers who used these accounts as their primary payment method last holiday season say they will not do so again this year, the poll found. In addition, 10 percent say they won't use their credit cards at all.

"We applaud consumers for being fiscally responsible this holiday season and encourage them in their efforts to have a happy and debt-free holiday," said Steve Streit, Green Dot's chairman and chief executive officer.

More than half of adults in two demographics – 35 to 44 and 45 to 54 – were concerned about accruing more credit card debt this holiday season, with 55 and 58 percent, respectively, responding they would seek other options, the report said. Regardless of age, women said they were more wary of the problem, with 52 percent saying this was a concern, compared to just 45 percent of men.

The poll also found 45 percent of all consumers polled were hit with unexpected bank charges in the last calendar year. More than half of those said they struggled with overdraft fees, and 29 percent said they had additional levies due to late payment[s] on their credit card debt. Americans also reported many fees for using out-of-network ATMs and finance charges.

In the past several months, many Americans have been able to successfully reduce their total credit card debt. They have done so by not only cut their reliance on these accounts to make everyday purchases, but also by increasing their monthly credit card payments to further cut into their existing balance. As a result, consumer credit has been on the decline for the last few quarters, and credit quality has increased.