Fears surrounding a recession and continued economic turmoil are leading consumers to reevaluate their spending habits. While many have decided to cut back in a number of categories, others are shifting toward leaning on credit for their purchases.
Over a third (37%) of U.S. adults believe the U.S. is already in a recession according to recent CivicScience data. Another third believe the U.S. will be in a recession within the next six months.
Consumers also continue to grow increasingly less comfortable with the amount of debt they have today and the debt they expect to take on in the near future.
Credit card debt in particular is on the rise among Americans, with a recent spike occurring at the beginning of July. In fact, data show a change in the frequency of credit card use, as a larger number of shoppers report using their credit cards more (24%) rather than less (21%) for purchases.
And those 18 to 24 years old are the most likely to be pulling out their credit cards for payments more often (39%) along with lower-income individuals (31%).
Nearly a third (31%) of U.S. adults have recently applied or plan to apply for a credit card soon. While 10% are looking to get strategic with cashback offerings, 7% of recent credit card applicants are hoping to cover expenses due to rising costs.
CivicScience continues to monitor consumer sentiment and behaviors. Check back weekly for our up-to-date analysis of new and growing trends.