Consumer Spending, Holiday Spending, and Credit Card Use Over The Holidays; Is It Bad News For Retailers?

Consumer spending accounts for about 70% of economic activity and the Gross Domestic Product is on the rise again, but there are those who worry about holiday spending and the use of credit cards for Christmas purchases and foresee that there will be little positives for retailers this buying season.

Basically, consumer spending is at such a low that were it to lessen we could see recession numbers yet again. Many retailers worry that this holiday season will bring consumer spending in the form of cash only. This isn’t a bad thing necessarily; yet many retailers are blatantly open the use of credit cards bringing in more money because people tend to spend more with credit cards than when they are carrying cash.

Holiday spending will be carefully watched this season and customer spending is hoped to be on the rebound but hopes are low due to the falling use and predicted practice of consumers not using credit cards for their purchases.

Retailers say, simply put, more money is made when credit cards are used because it’s not money being handed over at that moment and consumers are less cautious with their purchases. Among economic hardships, unemployment, reduced wages, and the countless other difficulties Americans have faced this year, retailers now have to worry about less use of credit cards from consumers during the holiday season.

However, this prediction of less credit card use doesn’t guarantee less money for retailers. With new regulations on prepaid gift cards, which help protect the consumer from fees and short expiration dates, there could be a rise in gift cards. Also, the argument has been made that Americans can spend they are just being cautious.

Yet, with the trials and troubles many have faced over the past year this may be the holiday season to forget about budgeting, employment and payment woes of the past, living lean, and consumers may be poised to splurge because treating family and friends this Christmas season is treat everyone deserves.

During holiday spending season many diehard NFL fans will look to find some great deals on apparel.  Green Bay Packers fans will seek Aaron Rodgers jerseys as they hope he plays well again in 2012.  It should be an interesting season as some analysts continue to predict that the Packers will play very well.