Retail spending via credit cards has seen great rise in the past few years. Yes, it is the credit card which is providing more and more purchasing power to the buyers and thus, this sudden splurge in the credit card users is pretty obvious.
In the past few years, consumer spending by means of credit cards rose over billions meaning that every individual using their card spends a massive amount of money. And, as per a new study, this trend is bound to continue and rise in the coming years.
Debit Card Expenditure
Despite the constant resurgence in credit card spending, debit cards continue to be a big winner of this field. Expenses on debit card have seen a growth of 45% in the past decade in comparison to credit card usage which is 11%.
However, outside the plastic money realm the traditional mode of payment continue to be relevant, but have witnessed a decline. There has been a 1% decline in cash usage and 5% decline in the use of cheques, especially amongst small purchasers.
Know about the credit in credit cards
With a credit exceeding limit set by your credit card companies, you can shop for anything and everything you desire within that limit. As per the expectations, a lot of credit card is being used for homes, holidays, retail purchases online, furnishings, walls and more. More and more people are buying interior décor stuff and house security items. Customers are expected to carry 2.5 billion credit card transactions in just few months. And the forecast suggest that the rise is 8% higher in comparison to the previous year.
Confidence of the consumer
The confidence of the consumers in the plastic money has shown great rise. Economic news with GDP reports and inflation info add to it. These predictions enhance the confidence of consumers. The enhanced confidence may be fully justified. Around 30% of the total credit card expenditure is carried out on the daily essentials like food items and groceries. Consumers are racking up their credit card bills by shopping for designer dresses, fashion accessories and everything random.
Once they spend so much on the card, it gets very difficult to pay off and they end up making it very costly. When things go out of hand, then you are only left with the option of credit card consolidation loan. There are several debt consolidation companies that provide you with such loans. You can easily apply for it online. If you’re in debt of your credit card, then it is advisable that you meet a credit counselor and do as suggested.
On the other side, around 59% of the credit card owners who pay their bills on time every month are likely to reap the benefits cashback and reward on their cards.
Enjoy holidays on credit
A large number of consumers are using their credit card for holidaying abroad. They make all the payments and retail spending with it. you have different schemes to meet your expenses and easily pay them out monthly on 0% interest.