For the first time since the recession began in 2008, the American economy is steadily recovering and showing signs of hope at last. Lenders are beginning to lend again, the housing market looks promising, and consumers are shopping!
Over the last five years, the average American had to tighten up the purse strings, make major cuts in spending habits, and use a larger portion of their income to pay down debt. The result was a mixed bag of positives and negatives. Paying off debt is of course a positive, but the negative was the impact the reduced spending had on the economy as a whole. Typically, consumer spending makes up about 70% of American economic activity!
Now that Americans are increasing their spending habits, they are doing so wisely. Many learned the hard way about credit cards, interest rates, and spending more than they earned. A popular alternative to a traditional credit card is the prepaid mastercard. Consumers can go to websites like kaiku.com and securely apply for a prepaid card. They can then add funds to the card and enjoy the convenience of carrying a debit card without the risk of spending more than the funds that are available.
It was a hard lesson to learn, but consumers are now spending smarter than ever. Analysts predict spending to stay on the rise and the economy to continue to mend over the next few years. It’s nice to see some positive trends after five long years of nothing but decline!