MIAMI, Sept. 5, 2012 /PRNewswire/ -- Consumers are becoming more confident. Analysts were predicting that consumers would become more confident with their money and purchases in the final month of summer, but they never anticipated such massive spending levels across all areas of the finance world.
What caused consumers to start borrowing and spending more money?
There are two very important factors that have caused consumers to become more confident with their money. Merchants all over the world were lowering their prices in hopes of spurring consumer interest. This has had a huge effect on consumer confidence. Interest rates have also fallen to an all-time low. Merchants are hoping that this confidence level continues to grow, and consumers continue to spend and borrow money. Analysts are predicting that this consumer confidence trend will indeed continue to grow throughout the year and into 2013.
A consumer confidence survey that was recently released by the University of Michigan and Thompson Reuters backs up the consumer confidence trend. Before the recession hit, consumer confidence level was rated a high 89. The current consumer confidence level is hovering right below 75. In July, the consumer confidence level was only 72.3.
Mark, a representative for Loans.net, a website that specializes in providing consumers with multiple loan options has this to say about the current spike in consumer confidence:
"Large finance companies are doing everything they can to get more business. We have seen a record amount of consumers applying for in becoming approved for debt consolidation loans. Consumers are taking advantage of these lower interest rates to help them reduce their overall debt."
When asked if consumers' consolidating their debt is a good sign, Mark had this to say:
"The fact that banks are again approving debt consolidation loans in record numbers. When banks practically shut their doors a few years ago to all types of loans, it was a prelude to what became a terrible recession. It looks like this recession may be a thing of the past."
Consumers are not only applying for debt consolidation loans, they are also purchasing big ticket items like cars. They are not quite as strong as they were before the recession hit, but their numbers are growing every day, Consumer demand looks like it is back just in time for the upcoming busy holiday season of 2012. Merchants are thrilled, when consumer confidence goes up, the whole economy benefits.
SOURCE I.D.S International LLC