The recession has caused consumers to change how they mentally account for money, including how they use credit cards, Susan Menke, vice president and behavioral economist at Mintel Comperemedia, noted during a recent Web seminar on consumer spending trends.
As consumers paid down credit debt and spent less using cards, they showed a new tendency to be more conservative in their card use, Menke said.
However, the first sign of increased spending on cards in several years emerged in the Federal Reserve’s G19 report (
Despite this uptick, Menke contends it is not yet a trend. “People are not going to take advantage of credit the way they used to,” she said in an interview.
The economic crisis created a wake-up call for consumers, Menke said during the webinar. Consumers overall are moving away from mindset of relying on credit, says Menke.
“They are less reliant on credit cards and home-equity loans for extra spending,” She said. “If people are feeling comfortable with their debt levels and are willing to spend a little on credit again, it is actually great news for the economy this year,” she said.
