According to experts, credit card spending is slowing down as the economy cools.
Because of inflation, higher interest rates, and upcoming student loan repayments, experts believe that a spending slowdown is unavoidable.
Over the past year, there has been a significant surge in credit card debt, reaching an all-time high.
A report from the Federal Reserve Bank of New York highlights that credit card balances for Americans have surpassed a remarkable $1 trillion this year, marking a new record.
Simultaneously, the personal savings rate has experienced a decline.
In July, there was a mere 0.1% year-over-year rise in overall card expenditures, following three consecutive months of year-over-year drops.
This uptick was partially influenced by events like Fourth of July sales, Amazon Prime Day, and "Barbenheimer.
The trajectory of consumer spending hinges mainly on student loan payment choices. Some people may rely on credit cards to pay off debt.
Overall, consumer spending habits have very much evolved in the past 24 months and will most likely continue to evolve in the following months.