Best Credit Offers are not in Demand

Javelin Strategy & Research Company has published the report about credit cards and consumer expenses, which shows that Americans are decreasing the credit card usage and are bearing difficulties in paying their debts. The Javelin specialists revealed the appearance of a moderate consumer behavior as a result of an economic recession, consequences of mortgage crisis, gas prices growth, and food prices rise. "The dramatic decrease of credit card expenses questions the opinion that Americans are using their plastics for purchasing everyday goods to maintain the quality of life," - says Jim Van Dyke, The President of Javelin Strategy & Research.

"Consumers considerably reduce shopping at large malls, don't eat out so much, and are more careful about their credit card debts. We believe that it happens, because they have already experienced the influence of crisis and realize that the worst part is to follow. People are very careful".

The Javelin analysts have also revealed some considerable decrease of the actions of credit card companies. Seven out of ten issuers (including Visa Company) reduced their effort to attract new customers, and 62% decreased credit lines, available for consumers.

"Credit card industry is now going through the number of blows, connected with the plastic usage recession, high level of risks, and the future possible legislation alterations. There is no evidence how it can affect Americans", - says Bruce Cundiff, The Consulting Chief Executive of Javelin Strategy & Research.

The report has also showed the growing problems among consumers with average income ($25 000 - $49 000) in the age group 35-64. It appears that the most part of consumers within this category is not able to pay off credit card debt, and reduced the usage of their average credit cards. Javelin also registered the sharp decrease of purchase of luxury goods among the middle class and middle age consumers.

Bruce Cundiff believes that the middle class consumers are the group that is going to be affected with changes in credit card industry first of all.

The conclusions from Credit Card Report include the following:

• 45% of respondents admitted that the opportunities to make savings decreased.
• 37% of respondents said they don't use their best credit cards that much anymore.
• 28% admitted that it became harder for them to pay off their debts on plastic.
• Every fourth respondent is now buying less everyday consumer goods than before.
• 57% of respondents are now more careful about eating out.
• 46% of consumers started to make purchases at such chain stores, as Wal-Mart and Target.

The report was based on the data after the survey of around 1500 respondents of different age, sex, and income in USA. Besides, the data of the 13 main credit card companies was used for the survey as well.