While many consumers are attempting to reduce debt, a large number were also forced to use their credit cards during the month of April to afford rising gas and food prices.
Credit and debit card purchases at retail locations increased significantly on a year-over-year basis in April, according to the latest monthly SpendTrend report from First Data Information and Analytics Solutions. Overall, the total number of transactions on these accounts – as well as those involving checks – increased 6.7 percent, while the value of those purchases rose 8.0 percent over April 2010.
Overall, credit card purchases jumped 4.6 percent, while their value rose 7.4 percent. Purchases on debit cards that required a customer signature rose 9.5 percent with a value increase of 9.9 percent, while PIN debit purchases jumped 4.8 percent with a spike in value of 7.2 percent.
Several reports have illustrated that consumers are having a more difficult time affording gas out of pocket, and are putting these purchases on their credit cards to make them more affordable in the short term.