Consumers credit card eagerness an economic positive
Many consumers have shown a greater interest in dealing with credit card debt in recent months, leading many experts to speculate that this is a sign of nationwide economic recovery.
All three of the nation’s top payment processing networks – Visa, MasterCard and American Express – reported far heavier volumes in credit card spending during the first quarter of the year, according to a report from the New York Times. Now, many experts believe that this change is both a sign that consumers feel better about their personal financial situations, and that the increase in spending is driving further economic recovery.
“The dust is slowly coming off credit cards,” Gregory Daco, a senior economist with IHS Global Insight, told the newspaper. “It is a general return of consumers to credit card usage, but it is a cautious one. Income is lower and slowly making a comeback right now.”
On a month-over-month basis, consumer credit card spending has increased during just two months since 2008 – December 2010 and March 2011.