According to Visa’s latest quarterly report, we’re opting for credit more than debit.

Debit transactions now makes up 54% of transactions, a solid sign that we are cutting back on borrowing, after years of lend and spend habits.

I’ve always been an advocate of using cash for day-to-day purchases, so I’m happy to see this trend. . Not only does it help stay out of debt, credit counselors say a cash diet can actually help us save 20%. When  you use a credit card you’re more likely to splurge on discretionary items. 

To read on how to maintain a cash diet, while keeping your credit report and score in tact, see “Guidelines for a Credit Card-Free Life.”