A drop in national credit card debt could be good news for merchants

Stores that see a high percentage of card activity can be affected by the trends that impact card​-using customers. While a high level of card debt does at least appear to signify a proliferation of users, it can also be an obvious deterrent to future purchases. If that's the case, then a bit of good news (despite how it may look) might be seen in recent reports that debt rates have fallen. After all, better spending on the customer's part could mean fewer chances of their getting a card canceled due to bad payments and less overall hassle for shop owners.  

As the Wall Street Journal reports, this appears to be indicative of a reluctance among consumers to take on higher debts, and allegedly makes up for a lower amount of the total percentage of borrowing than it has in more than 20 years. Another potentially heartening number comes from employment figures, which rose in April after taking a dip the month before. The Journal also states that the overall amount of non-mortgage related credit lent to consumers has grown by billions—perhaps an encouraging sign in the bigger picture. 

Spenders being more frugal about the way they buy may seem like an immediate loss for merchants, but if those purchases cannot be paid off, the overarching damages are worse for everyone. It's worth the extra time customers spend to make sure they aren't making things worse for the long run. Stores can take advantage of this by promoting good spending habits and perhaps even helping to educate consumers as to the best ways to manage their card payments. This could be a way in which businesses that employ POS card processing can inform others while protecting themselves. 

Leave a Reply

Scroll to Top