Though employment is still sluggish, other economic indicators have consumers feeling better about the economy in general and their finances in particular, and as a result, many Americans are now using their credit cards more often than they did in the past, and carrying more debt as well, according to a report from Forbes Magazine. A number of reports from the federal government and analyst firms indicate that several circumstances have led consumers to use their credit cards more actively.
One of the primary reasons for this may be that repeated drops in instances of charge offs and delinquencies prompted lenders to lower both standards for credit card lending and interest rates on these accounts, the report said. As a consequence, they are now sending out more offers for new accounts, which may urge consumers to spend more.
Many consumers stopped using their credit cards regularly during the recession, or even altogether. Often, high levels of credit card debt made it impossible to afford their monthly payments.