Credit Card Holders Reached The Highest Percentage Yet

A surprising twist has occurred in the credit card industry as more clients turn to credit card companies for loans. Customer borrowings surged up to $21.4 billion just as the month of March was about to end.

The percentage of credit card loaning and the amount of dollars loaned has reached its highest amount in March, breaking the November 2001 record. However there has also been a puzzling increase of $5.2 billion in the amount of revolving debt. This may be due to the downtrend of credit cards since the recession; the limited number of cards has also limited clients’ purchases.

Analysts still find it difficult to interpret the data that they have gathered about the sudden surge of credit card in March. Does the data indicate that customers are now more confident financially to get credit cards or are they in need of the cards to pay for their loans?

According to experts, in this stage, it is too early to tell what the customers are thinking. A little more time and credit data will be needed to truly understand the flow of the market today. In a few months, study will be able to answer if the Americans have truly recovered from the recession or are they still struggling through mortgages, unemployment and other unsettled accounts.

A recent research conducted by the Conference Board, the February and March data included an increase in the percentage of clients who are confident that their incomes will be increasing in the coming months. This is an indication that people are willing to borrow if they are expecting a larger amount of pay in the future.

On the other hand, an increase of 0.5% in the hourly pay has occurred in the last 3 months; also an 8.8% has hiked in the price of gasoline and a 0.9% inflation rate increase. To keep up with their lifestyle, some households have to borrow from credit companies.

But good news from the Energy Information Administration has burst out his week, gasoline prices will not exceed $5 a gallon, as analysts guessed. The price will be $3.70 per gallon in the summer.

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