After several years of frugal festivities, consumers once again turned to credit for their Christmas shopping.
Credit-card purchases jumped more than 7 percent in November and surged again in early December, according to First Data, which tracks consumer payments. A survey by Consumer Reports found that shoppers planned to charge an average of $756 this holiday, up 6 percent from the previous year, though the number of people who planned to use credit has remained steady.
“If past behavior is any predictor, the closer you get to Dec. 25, the more likely you’re running into that store and buying whatever you can,” said Ed Ferrell, director of Consumer Reports’ national research center. “Plastic really starts flying more.”
The rise of credit can be a boon for retailers and the broader economy. It has helped consumers’ spending rise faster than their incomes, which in turn drives economic growth. Experts also say the drop in the nation’s jobless rate and the bounceback in consumer-confidence indicators have also made Americans less cautious about borrowing. The Washington Post; Photo: Daniel Acker, Bloomberg
