One of the types of debt consumers sometimes hold is credit card debt. Recently, an article on CNNMoney’s website reported on some interesting statistics regarding credit card use in the United States.
The statistics indicate that credit card use is going up in the United States. Reportedly, the U.S. has seen a rise in credit card purchases in each of 2011’s first three quarters. The rise the U.S. saw in the third quarter was a 10.6 percent rise. It has also been reported that the number of purchases made with credit cards in the U.S. this Black Friday was 7.4 percent greater than the number made last Black Friday.
What is causing this increase in credit card use? One thing that could be contributing to this trend is a change in lender behavior regarding credit cards. According to the CNNMoney article mentioned above, both the number of credit card offers made by banks and the frequency of rewards being offered on credit cards have gone up in recent times. One could see how such increases could potentially lead to an increase in credit card use.
The trend of increased credit card use in the United States gives rise to some other interesting questions. What short-term and long-term effects will this trend and its causes have on consumers in Florida and the rest of the nation? What effects will this trend have on the economy? How long will this trend last? One wonders what the answers to these questions will turn out to be.
Source: CNNMoney, “Credit card use is on the rise,” Blake Ellis, Dec. 5, 2011