PADUCAH, Ky.---We're all familiar with the term "cashless society," but that trend could be reversing as people are actually going back to cash, and cash only.
A new F.D.I.C. study found more than a quarter of U.S. households don't primarily rely on banks  or have no bank at all. 
Three in ten households have no savings account, and a quarter of households have used at least one "alternative financial service," like a payday loan or check cashing business.
 
A local financial adviser said ditching the banks may not be such a good idea.
He says it's a product of the recession. Many people borrowed and spent way too much before the recession, now they're trying to dig their way out of debt and feel like the best way to do that is operate on cash alone.    

"The credit came too easy during late 90s and 2000 era," Financial Consultant Larry Housman said.

Now the recession is over big spenders are sobering up, and it's not easy.

"Sometimes that's actually more painful than the recession itself because now we 'gotta work through and not only support our lifestyle today but we've got to fix some of the past sins we created back when things were pretty fat," Housman said.

Housman said more people are using the so called envelope system; cashing their check as soon as they get it, then storing cash in separate categories.  He recommends this method, because you can't spend cash you don't have.

"It works, it works for a lot of people you'd be surprised how many people use the envelope system," Housman said.

According to the F.D.I.C. study many are ditching banks altogether. But Housman said that may not be such a good idea.

"If you go into maybe sign up for utilities, they will ask where you bank at," Housman said.

Housman just hopes the study is an indication that those who over spent and over borrowed before the recession learned their lesson. Housman actually recommends the envelope system and he points out that you don't have to stay on the envelope system, do it for a while and then when you feel like your spending habits are under control, you can stop using it.  If you'd like to see the entire F.D.I.C. Study, click here.