A new report from Wells Fargo says credit is getting more expensive and likely to become harder to access in the wake of the recent so-called banking crisis. Their report looks at the degree to which credit has sustained consumer spending so far and how diminished access to credit could negatively impact consumer spending.
Some key points:
- Consumers are relying on credit much more than in the past.
- It’s more expensive to borrow and becoming more difficult to gain access to credit.
- Tighter credit could result in layoffs and negatively impact disposable income growth.
- Consumers’ capacity to spend could be dented to the extent that access to credit dwindles further.