Credit Business

Even though worries about this year’s levels of consumer spending are being discussed, key analysts of credit card companies are expecting steady growth in the usage of credit cards over the next year. In the past quarter, credit card usage has increased by approximately 6% when compared to the previous year.

With various financial issues appearing in the economy such as late tax refunds and higher taxes beginning in 2013, many card companies like Visa and MasterCard have been worried that consumer credit card spending could be affected. At least in the short-term, however, this does not appear to be the case.

It is normal to see a reduction in consumer spending in the first three months of the year, as many Americans make large purchases during the holidays and typically spend the following months paying down their expenditures. While March year-to-year growth was less than the metrics observed for the preceding month, there is still a healthy amount of consumer credit card spending occurring within the economy.

Some have suggested that as the economy has improved in a broad sense and credit has become slightly more available, more and more people are resulting to the spending habits that they had prior to the recession: namely, more and more Americans are resuming the habit of using their credit cards in order to make up for the loss in income that they have experienced.

Still, it is worth noting that the overall level of credit card debt in the United States has been on a downward trend, and that younger people are using credit cards much less than their parents ever did. This bodes well for maintaining a relatively stable credit market and will help avoid another large credit bubble like the one that manifested in 2007-08.

Many analysts have also mentioned the notion that tax changes do not have a historically strong correlation with the level of credit card use; more often than not, that number has been determined by the growth of GDP. Since the US economy is slowly picking up in terms of GDP growth, many analysts are bullish on the prospects of increased credit card demand for 2013.
Similar Posts:American Consumers Can Look Ahead To Better Times If They Rein In SpendingAmerican Net Worth Surges; Closes in on 2007 LevelsAmericans Borrowing More But Spending Less with Credit CardsUS Credit Card Debt Increases for First Time in Five YearsCredit Card Balances Bumped Higher in August

No comments yet. Please leave a comment!

Leave a comment

Name (required)

Mail (will not be published) (required)

Website

XHTML: You can use these tags: