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Credit Card Use on the Decline: First time in more than a year

The Denver Post recently wrote an article entitled, “Decline in use of credit cards 1 st in 13 months.” Although this title is pretty much self explanatory, there are many details that surround this decline. After all, there has to be a reason that credit card use has slowed down for the first time in more than a year.

In April, revolving debt, which includes credit cards, decreased by $403 million. This is the first decline dating back to March of 2006 when a drop of $578 million took place. It will be interesting to see what if this trend continues in the months to come, or if it was an isolated incident much like last March.

The Denver Post was not the only media source to break this news. After all, anytime that spending and credit card debt decreases in America , people start to take notice. There are many suggestions as to why this has happened.

Of course, the reason for this decline may be nothing more than the time of the year. March and April are notoriously slow months because people are still trying to catch up from Christmas, and of course, they want to get back on track by summer time.

Other experts feel that this trend may continue since more and more consumers are becoming aware of the downfalls of abusing credit cards. They are learning more about terms and conditions, the effect of high interest rates, and how paying the minimum balance is not beneficial. It only makes sense that as more people learn about the downfalls that credit card use is going to decline.

Keep your eyes open to see if this trend continues over the summer. While this is something to keep an eye on, it is not a reason for anybody to become overly concerned.

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