Rising credit-card use shows consumers are strapped

The financial institutions don't plan to end rewards entirely, but want to alter them in ways that boost credit card usage and reduce upfront rewards bonuses

EVEN though evidence is mounting that the US economy may be soon heading into a recession, there are plenty of analysts who say that the surge in credit card borrowing is a sign of strong confidence among households.

That’s hardly the case. In fact, households’ confidence in the future growth of their incomes has been cooling since late last summer, which means borrowers will only reach for what’s in their wallet to compensate for what their salaries will not cover.