Effects of Recession on Cash and Credit

Recession will affect the way a customer spends the money he/she has earned. When a customer is low on cash, credit is the next option. Since the cash is not instantly taken it allows the customer to set money aside to pay the credit card bill at the end of the month. When a customer charges a purchase it can be because he/she does not have enough cash to pay for an entire purchase. The merchant does not lose money in a situation where the customer cannot afford the bill at the end of the month. The money has already been deposited into the merchant's bank account and it is no longer their concern. A recession makes it very difficult on both customers and merchants which is why it is very important to be able to make credit purchases. Cash purchases lessen and credit purchases increase during a recession, especially for big purchases.

General Credit Card Machine References
Customers Charge More on Credit Cards
Effects of Recession on Cash and Credit
Why Customers Carry Less Cash
The Convenience of Credit Over Cash