As we near the end of October we are seeing some indications that consumer confidence remains weak in some areas and there are also some pessimistic views on purchasing that may arise during the holiday season, as consumers may either be in a position where they can’t spend as much money as they have in the past or are simply being cautious as some feel there is a great of uncertainty still in the economy as a whole, not to mention specific areas of their financial life. Furthermore, there are some issues which have arisen over the past months that may also impact consumer confidence and holiday purchases, which comes in the form of consumer debts that have continued to remain a problem.
We have seen over the past weeks that certain types of delinquencies have increased, specifically in the area of loans, but there are also some incoming reports that credit card missed payments are also returning once again, despite the fact that consumers had previously been thought to be in a position where they were working to pay down their debts, but some reports indicated that during the second quarter of 2011 spending began to increase once more.
However, what some officials worry the case happens to be is the fact that some consumers may be in such a difficult financial position that they are using their credit cards to make even the most basic of purchases, which is obviously going to be a dangerous practice if a consumer finds themselves in a position where they cannot pay even minimum payments on their credit card debt. While these loans and credit cards are not seeing negative results in every area, as certain types of personal loans have not seen increases in delinquencies and there are some lenders who are reporting more positive numbers in terms of credit card use, consumers are still being advised to take caution when spending, but of course officials don’t want spending to stop entirely as a wait-and-see attitude may delay economic improvement in the case where consumers might be in a position to buy more, handled debt, and contribute to the overall economy.
Obviously though, officials do not want consumers to spend when they do not have the money to repay nor are officials looking to consumers to rely on credit in cases where they may have to carry a balance for a substantial amount of time and pay interest rate costs in the long run, there are those mixed opinions as to how confident consumers are at the present time, as some areas are seeing lower numbers currently, but we still have some retailers who hope that consumer confidence and spending will lead to a more favorable holiday shopping season in the coming weeks and, may point to the ability of consumers to handle purchases in a variety of ways.