Consumer spending has gone up 6.24 per cent according to the latest quarterly report released by Moneris. Digital purchases using a credit or debit card has gone up almost 15 per cent year –over-year in Q1 alone. And the total amount of contactless transactions rose almost 109 per cent. A triple increase from the year prior.
The more digital payments consumers continue to make using their cards, the more at risk they are for getting into debt, without them knowing it.
“When consumers take advantage of all of the technology out there to make a purchase, it gives them a mental break from going into their wallet,” says Jeffrey Schwartz, Executive Director, Consolidated Credit Counseling Services of Canada.
A mental break from one’s wallet is allowing many consumers to avoid the harsh reality of what is going on in their bank account.
“There are many retailers out there using leading edge technology to speed up the purchase process; even helping consumers avoid lengthy line ups to grab their morning coffee,” says Schwartz.
For consumers to avoid credit card debt, Jeffrey Schwartz offers the following tips:
- Put a pre-set monthly limit on tap-and-go purchases. Staying within the limit, will help to avoid taking on further debt
- Working these purchases into a pre-determined household budget will help to avoid over-spending
- Commit to spending cash only instead of using credit to make purchases