Consumers Increased Their Credit Card Use Over the... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Consumers Increased Their Credit Card Use Over the Holidays

Consumers Increased Their Credit Card Use Over the Holidays

Consumers Increased Their Credit Card Use Over the Holidays

According to consumer payment tracking service First Data, in November credit card transactions increased by more than 7%. Early December saw another surge in spending via plastic. Data released by consumer reports revealed that shoppers planned on spending 6% more on holiday shopping this year than last – an average of $756 per shopper.

Increased consumer use of credit can, in theory, help spark drive overall economic growth by allowing people to outspend the rise in their personal incomes. Experts are also pointing to the upturn in consumer confidence in combination with the dip in the nation`s unemployment rate as being indicative of why many American s have become more willing to open up lines of credit on which to borrow.

Credit card-fueled spending growth is not all good, however. The heavy borrowing practiced by consumers when the economy was booming is, in part, what led to the financial crisis in 2008. While the country’s debt has lessened in the years following the recession, recently consumer credit card debt is on the climb once again, which may very well lead to many individuals finding themselves faced with a post-holiday personal finance struggle. According to a Consumer Reports Study, nearly 6% of consumers are still struggling to pay down credit card debt that they accumulated buying gifts last Christmas.

“There`s a misunderstanding that the minimum payment is sort of an adequate payment,” said Boston College marketing professor Linda Court Salisbury, according to The Washington Post. “If you pay the minimum payment every month, the cost to you is going to be enormous.”

New Federal regulations passed recently are designed to help consumers get a better grasp on the seriousness of their debt situation by mandating that credit card companies must disclose the length of time it would take an individual to pay off their balance in its entirety simply by making the minimum payment each month. Salisbury coauthored a recently-released study that found the new information provided by credit card companies does not seem to affect how much money consumers pay towards their bills.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New SPG Amex Luxury Card Arrives This Summer

Posted: April 26, 2018

The Starwood Preferred Guest American Express Luxury card is coming this August, along with the new SPG and Marriott combined rewards program. This card offers 6x the points when booking stays at SPG and Marriott Rewards hotels and 3x ... Continue reading
Masterpass Comes to BJ’s Wholesale Club

Posted: April 25, 2018

Have you been wondering when you would be able to use Masterpass, to check out at BJ's Wholesale Club? If you have, you don't have to wonder any more. The pair recently inked a deal, bringing Masterpass, MasterCard's digital wallet, to ... Continue reading
A New Unified Marriott and SPG Rewards Program is Coming

Posted: April 24, 2018

When Marriott acquired SPG, it was unclear what would happen with their rewards programs. But now the cat is out of the bag. SPG, Marriott Rewards and Ritz-Carlton Rewards will all become one loyalty program this August. At that point, all ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!