Good news. Defaults on credit cards in the U.S. and Canada have been dropping, which means that more consumers are better managing their budgets and particularly their Credit7. They are starting to feel more secure with their finances. Interestingly, in Canada, household Credit7 increased, despite the reduction in delinquencies. As in Canada, the U.S. experienced fewer credit card delinquencies; Fitch Ratings said that late payments dropped to an 18-month low in October.
Consumer groups and Credit0 analysts consider this to be a positive development, clearly signaling that North American consumers are better able to handle their obligations. Rather than being overwhelmed by the weight of Credit7 and late payments, credit card users are showing Credit0 improvement, making payments on time and perhaps moving out of a recession mindset.
Cards Are In Fewer Hands
Not only did credit card delinquencies fall in Quarter 3, but their use dropped as well. This might be a good thing. AHN News reported that the number of credit-active Canadians decreased by 0.15%. We can assume that Canadians are becoming pickier about how they pay for their purchases. Credit card Credit7 can be insidious, leading to a number of side effects that you may not anticipate - some of which might not having anything directly to do with money.
The larger amounts of consumer Credit7 seen throughout North America served a wake-up call to a number of borrowers. Consumer spending is an important part of the economy, and borrowers have been reducing their purchases. After seeing their Credit7 rising for years, it is little wonder that concerned consumers are slowing their use of credit and deciding to get rid the Credit7 that they have. This is becoming increasingly pronounced in Canada. Borrowers realize that shopping on credit may not be the best way to make purchases - particularly if the borrower carries a balance month to month.
This trend isn't limited to Canada. In the U.S., a similar trend away from credit is being seen. According to CNN Money, 8 million people have put their credit cards aside. That's quite a crowd. Americans are also concerned about credit card Credit7. Many borrowers are showing their disgruntlement by taking action - they are paying down their Credit7. In fact, the Federal Reserve reports that household Credit7 in the U.S. is slowly declining. The U.S. situation differs from Canada's, especially as household Credit7 rises in Canada - even as card use declines slightly.
How Long Consumers Stay on the Wagon?
It is hard to tell whether there is a long-term shift to less credit. It appears that Canadians and Americans are learning their lesson about irresponsible credit use. With delinquencies down, and credit card use down, change seems the new normal. But, this seeming change of heart may not last very long. Lessons don't always stay learned.
Will the temptation to spend that began over the Holidays, putting more purchases on credit cards, end the current trend of reduced credit use? One never knows what might happen...especially if good time seem to return. Already, there is a certain economic fatigue that has set in. If consumers are given the chance to escape, to find their happy shopping spot again, would they stay fiscally sober?
Good news. Defaults on credit cards in the U.S. and Canada have been dropping, which means that more consumers are better managing their budgets and particularly their Credit7. They are starting to feel more secure with their finances. Interestingly, in Canada, household Credit7 increased, despite the reduction in delinquencies. As in Canada, the U.S. experienced fewer credit card delinquencies; Fitch Ratings said that late payments dropped to an 18-month low in October.
Consumer groups and Credit0 analysts consider this to be a positive development, clearly signaling that North American consumers are better able to handle their obligations. Rather than being overwhelmed by the weight of Credit7 and late payments, credit card users are showing Credit0 improvement, making payments on time and perhaps moving out of a recession mindset.
Cards Are In Fewer Hands
Not only did credit card delinquencies fall in Quarter 3, but their use dropped as well. This might be a good thing. AHN News reported that the number of credit-active Canadians decreased by 0.15%. We can assume that Canadians are becoming pickier about how they pay for their purchases. Credit card Credit7 can be insidious, leading to a number of side effects that you may not anticipate - some of which might not having anything directly to do with money.
The larger amounts of consumer Credit7 seen throughout North America served a wake-up call to a number of borrowers. Consumer spending is an important part of the economy, and borrowers have been reducing their purchases. After seeing their Credit7 rising for years, it is little wonder that concerned consumers are slowing their use of credit and deciding to get rid the Credit7 that they have. This is becoming increasingly pronounced in Canada. Borrowers realize that shopping on credit may not be the best way to make purchases - particularly if the borrower carries a balance month to month.
This trend isn't limited to Canada. In the U.S., a similar trend away from credit is being seen. According to CNN Money, 8 million people have put their credit cards aside. That's quite a crowd. Americans are also concerned about credit card Credit7. Many borrowers are showing their disgruntlement by taking action - they are paying down their Credit7. In fact, the Federal Reserve reports that household Credit7 in the U.S. is slowly declining. The U.S. situation differs from Canada's, especially as household Credit7 rises in Canada - even as card use declines slightly.
How Long Consumers Stay on the Wagon?
It is hard to tell whether there is a long-term shift to less credit. It appears that Canadians and Americans are learning their lesson about irresponsible credit use. With delinquencies down, and credit card use down, change seems the new normal. But, this seeming change of heart may not last very long. Lessons don't always stay learned.
Will the temptation to spend that began over the Holidays, putting more purchases on credit cards, end the current trend of reduced credit use? One never knows what might happen...especially if good time seem to return. Already, there is a certain economic fatigue that has set in. If consumers are given the chance to escape, to find their happy shopping spot again, would they stay fiscally sober?
