The U.S. credit card industry continues to expand in three directions: usage; the arenas in which credit cards are accepted; and the variety of cards accepted by merchants. Consumers who once saved credit cards for emergencies are now accustomed to using them for smaller and everyday purchases.

While credit card companies are enlarging their target market, individuals are dealing with growing debt. In this Mintel report, topics examining consumer debt will be discussed, showing how disposable personal income has risen but personal savings have decreased. This report also touches on the refinancing boom that has helped consumers cover credit card expenses.

Although consumers are learning how to better manage debt, many have taken to increasing their use of debit cards, which has become a major factor to the growth of the credit card industry. Consumers are realizing that debit cards are becoming just as convenient as credit cards, giving people the convenience of plastic while anchoring spending to account balances.

Mintel believes that the value of consumer personal outlays, which has increased, is being used to cover the rising revolving and non-revolving debt, which then leads to credit card debt. Since individuals are using their credit card more frequently, they are also accruing more credit card debt.