Economist forecasted that credit card loan will drop more than 50%.
This indicates that the credit card holders’ spending power or financial standing took a down turn which may affect the economy recovery.
Consumers are not more careful with their spending and that also means better cash management is being practised widely now compared to previously.
The news said that:
Total consumer credit outstanding in June fell $1.3 billion from May to a seasonally adjusted $2.42 trillion, the Federal Reserve said in a report.
Economists surveyed by Bloomberg News had expected a $5.3-billion drop. Also, the Fed revised the May decline in consumer credit to $5.3 billion from the previously reported $9.1 billion…
Such news mean the credit card issuers will experience low Interest revenue line.
