Periodically we bring you indicators, overviews and prognostications about our economy is faring, particularly in the ongoing wake of the Great Recession, whose effects have yet to be fully shaken.
Happily, speaking of that previous — and dreaded — economic “milestone,” Pymnts. com breaks down a report by CardHub, headlining that “U.S. Credit Card Debt Set to Reach Pre-Recession Levels.”
On the plus side, “that puts U.S. credit-card debt on track for its biggest gain since the recession, and means consumers are predicted to end the year with $54.8 billion more in credit-card debt than they started with, or almost $900 billion.”
Of course, on the other side, “Consumers are also expected to default on $30.35 billion in credit-card debt in 2014, CardHub analysts said.” While that means, on the one hand, consumers haven’t entirely finished climbing out of the various holes the Recession put them in, it can also indicate that consumers are, in their way, “discharging bad debt” — the same way banks and corporations do.
The result, with old debt gone — however imperfectly — and a job market that’s coming back, is that consumers may be in a better position to acquire new debt, as the other figures suggest.
Along similar lines, Huffington Post ran a piece on “4 Reasons Credit Cards Are Better than Cash.”
The main reasons are building up a credit card score, availing yourself of rewards, and increased security. Not more secure than cash itself, but compared to debit cards, in terms of protection from fraudulent charges. The article also talks about the increased ease for budget planning.
Whether it’s budget planning, or simply having household budgets allowing for more spending, consumers are heeding that advice.
Here at AVPS, we can help you get ready for the increase in consumer card use, with everything from mobile card readers — to help you meet clients where they’re at — to eCommerce solutions, for customers who increasingly are using those devices in their pockets and purses for shopping and other transactions.
And do we even need to mention — the holidays are just around the corner? More about those economic metrics in upcoming blog posts!