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Consumers did great job paying down credit card debt during pandemic. That may be ending

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gdale6
Moderator Emeritus

Consumers did great job paying down credit card debt during pandemic. That may be ending

  • Consumers pulled off a debt surprise during the pandemic year, paying down credit cards and avoiding falling into delinquency, unlike prior recessionary periods.
  • Bank and card company CEOs say pay rates remain above normal, but they expect those rates to go back down as consumers spend more, and government stimulus and additional unemployment end.
  • There is as much as $2 trillion in consumer savings, so the situation for spenders remains strong, and a growing economy and tight labor market will help.
  • Big banks and card companies are aggressively spending on card offers now.

https://www.cnbc.com/2021/07/30/covid-consumers-did-great-job-paying-credit-card-debt-it-cant-last.h...

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SweetCreditObsession
Valued Contributor

Re: Consumers did great job paying down credit card debt during pandemic. That may be ending

Thank you for sharing this. This is definitely an opportunity for them to lure folks into offers to spend, spend, spend. Hopefully many have managed to learn to live on less while also paying down the debt...



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Horseshoez
Valued Contributor

Re: Consumers did great job paying down credit card debt during pandemic. That may be ending

Silly me, my first thought when reading the news was, "Geez, this is a bad time to be in the proverbial garden."  Smiley Tongue

I categorically refuse to do AZEO!
Message 3 of 5
pizzadude
Credit Mentor

Re: Consumers did great job paying down credit card debt during pandemic. That may be ending

Very interesting article, wonder if the trend will continue through the next yet. 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 5
Citylights18
Valued Contributor

Re: Consumers did great job paying down credit card debt during pandemic. That may be ending

Did the consumers spend time not only paying down the cards but learning about better credit products?

 

That could have more lasting effects.

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