Consumers Increasingly Using Credit Cards to Cover Household Expenses
As reported by Bloomberg News, the U.S. Census Bureau’s Household Pulse Survey found that more than 35% of respondents are using credit cards or loans to meet their spending needs. This indicates a shift away from withdrawals from savings and retirement accounts, which had been on the rise through last summer. Similarly, the Federal Reserve G.19 report, released January 9, showed that revolving credit increased at a 16.9% annual rate, up from 10.4% in the December report. Households without savings are expected to be further strained if the labor market deteriorates or lending tightens further. Read more.