A survey by the National Retail Federation (NRF) shows that 34.7% of holiday shoppers plan to use debit or check cards as their primary form of payment, up from 30.7% last year. The 2004 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, also found that fewer consumers would use credit cards to pay for merchandise this holiday season (29.5% vs. 30.1% in 2003). Dependence on cash (25.9%) and checks (9.9%) also has subsided this year.

"Consumers have been budgeting and planning ahead for the holiday season, so it's no surprise that credit will take a backseat to debit cards this year," said Tracy Mullin, NRF president and CEO. "With debit cards, consumers can keep a handle on the money they have to spend without worrying about carrying cash."

According to the survey, consumers plan to buy books, CDs, DVDs, videos and video games (60.1%), clothing and clothing accessories (59.5%), and gift cards (51.8%) this holiday season. NRF continues to project that holiday sales will increase 4.5% this year to $219.9 billion.