Insert or Swipe Card
September 10th, 2019

It’s so easy.  See what you want, pick it up and head for the checkout counter, insert or swipe your credit card in the little reader then out the door.  Slam bam thank you ma’am.  Quick, easy, and adding to the already approximately $1.057 trillion dollars in consumer credit card debt outstanding according to the latest figures available.  During the 2008 recession credit card debt peaked out at about $870 billion.  That very large number did not generate as significantly higher default rates than might have been expected although there were more defaults.  But for those who had high credit card balances during the recession many started paying those balances down.  You pay more on your card to lower the balance, you don’t spend that somewhere else.

So here we are in September of 2019 at the tail end of one of the longest economic expansions in history.  The expansion is slowing, but until December 24th those card readers are going to be humming.  But after Christmas and at the beginning of 2020 people may start looking at those balances and start paying them down again as they did after the 2008 recession.  But this time they are going to be paying them down into an economy that is already showing signs of weakness.

Whose business is going to start to see some of that lower spending?  It’s worth taking a look at.

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