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Consumer spending expected to flat line as Americans focus on repaying debt
By Marvin Milner on Aug 20th, 2010
Consumer spending has increased over the past year, but the Associated Press reports that it's due to retailers cutting costs and keeping their inventories lean. In actuality, analysts say that consumers have lost confidence in the economy and the trend is not likely to continue. Americans have become more focused on reducing their debt as they attempt to rebuild their savings.
TJX, the retailer which owns Homegoods, Marshalls and TJ Maxx stores, is just one of many companies attempting to push store credit cards on shoppers despite the bleak economic outlook. While rewards incentives are working on some consumers, the majority are steering clear of signing up for any more credit cards that may result in debt.
The unemployment rate, which is currently hovering around 9.5 percent, is the reason economic growth has been slow, according to analysts. Without a steady income, Americans cannot be expected to continue spending and take on more credit.
Consumers struggling with loan or credit card debt could consider consolidation. By combining debt and taking out a loan with a smaller interest rate, consumers can reduce monthly payments.
More General Debt News
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