Credit Card Charges Down
http://creditfederal.com/article/articles/432/1/Credit-Card-Charges-Down
By CreditFederal.com - A good or bad credit personal loan, auto and mortgage financing, and credit card resource.
Published on 01/17/2008
Credit card charges are down from last year, hinting that a recession may be underway. Or will bad credit people use cards over equity?
Credit Card Charges Down But Bad Credit People May Pick Cards Over Equity Loans
In a survey taken by TransUnion, 30% of consumers claimed their current balance of credit card charges is the same as this time last year, while 42% report their charges are actually less. This means only 11% may have spent more, down from 14% last year.
Recession warning?
Although these figures may not reflect a drastic change from last year, it may indicate a trend that could lead to recession.
Mortgage influence?
Last year many consumers; even bad credit people, were still able to take advantage of home equity loans. But now with the credit crisis, more may be forced to pay for charges using a credit card which carries much higher interest rates, particularly those with subprime, poor credit.
Recession warning?
Although these figures may not reflect a drastic change from last year, it may indicate a trend that could lead to recession.
Mortgage influence?
Last year many consumers; even bad credit people, were still able to take advantage of home equity loans. But now with the credit crisis, more may be forced to pay for charges using a credit card which carries much higher interest rates, particularly those with subprime, poor credit.