Overall credit card spending fell sharply during the first two month of 2012, according to recently released figures from the Federal Reserve.
In a release, Five Star Equities said that the $5 billion plunge in spending on credit cards was due to the fact that many Americans were holding back on purchases in light of the recession. The firm stated that many had changed spending habits and as a result of the economic downturn. The report looked at a number of different factors and found that during February credit card users accumulated $799 billion in debt, 15 percent less than before the recession began.
“Consumer confidence was flat in April, as more people saw their personal finances improving, while the effect of higher gas prices may have contributed to declining attitudes about the overall economy,” the firm stated.
Some companies are hoping that relatively new technology, such as mobile credit card processing, will help increase spending in the coming years. The method appeals to many because of how easy it is to flash smartphones in front of a reader.Back To Blog