Throughout the pandemic, as millions of Americans were unemployed and struggling to put food on tables, credit-card debt declined. But that has now changed.
Throughout the pandemic, credit-card debt was declining as consumers as a result of stimulus checks and enhanced unemployment benefits.
But that has now changed.In the second quarter of 2021, credit-card debt increased by $17 billion quarter on quarter to $790 billion, according to New York Federal Reserve data published on Tuesday. Still, it has not yet reached pre-pandemic levels.To put the latest figures in context: In the last quarter of 2019, U.S. credit card debt was $930 billion, according to data from the New York Federal Reserve’s Quarterly Report on Household Debt and Credit.
“ In the second quarter of 2021, credit-card debt increased by $17 billion quarter on quarter to $790 billion. ”Stimulus checks, enhanced unemployment benefits, mortgage forbearance and the student-loan relief allowed many Americans to pay down credit-card debt they’d been accumulating for years.
Last year, consumers on average cut their credit-card debt by 14%, according to Experian data. This helped contribute to a 3.5 percentage-point drop in credit-utilization rates from 2019 to 2020.That’s still well below 2019 levels but signifies that U.S. consumers potentially hit an inflection point in terms of paying off credit-card debt. headtopics.com
Overall household debt grew by $313 billion in the second quarter to $14.96 trillion. The total debt balance is now $812 billion higher than at the end of 2019, according to the reportEarlier this year and for the majority of 2020, consumers had fewer opportunities to go out and spend money as a result of lockdowns than they do now.
And indeed, consumer spending jumped by an annualized pace of 11.8% last quarter, according to the most recent GDP report. The increase is four times faster than the typical increase each quarter.“ In the second quarter of 2021, the total credit limit for U.S. consumers increased for the first time in a year to $3.87 trillion. ”
But without a fourth round of stimulus checks and an additional $300 a week in unemployment benefits in 26 states that prematurely cut recipients off, more Americans are dipping into their savings to pay off their credit cards.That’s contributing to the higher credit card balances, New York Fed researchers said on a call with reporters Tuesday.
Another sign of confidence in the U.S. economy: In the second quarter of 2021, the total credit limit for U.S. consumers increased for the first time in a year to $3.87 trillion.Over the course of the pandemic, lenders gradually lowered the amount of money consumers could spend using their credit cards. headtopics.com
At the beginning of 2020, the total credit limit for U.S. consumers was $3.93 trillion. By the end of last year, it fell to $3.84 billion, according to New York Fed data.At the individual level, the Fed researchers said consumers are seeing that it’s easier than before the pandemic to request a higher credit limit or get approved for a credit card in the first place.Read more: MarketWatch »
German conservative candidate makes voting blunder on election day
Germany's conservative chancellor candidate Armin Laschet was ridiculed on social media for a misstep on election day on Sunday, capping a campaign marred by embarrassing gaffes that hurt his popularity.
Give Your Female Colleagues Credit For Their IdeasHere are three tangible strategies for giving credit to your female colleagues.
Recent hires at Credit Suisse in tech investment banking, FIG groupsAfter an exodus of nearly 70 senior staff, Credit Suisse is starting to rebuild. Here's who's recently joined the bank. DaddyDOGEtoken wow
Some People Are Really Mad About The Child Care Tax Credit––They Need To Have A SeatSome People Are Really Mad About The Child Care Tax Credit––They Need To Have A Seat “Some people think that the child tax credit is not fair, or discriminates against childless people.” Parents got completely hosed by the Trump Tax cuts, these people can sit the eff down.
School Supplies, a 'Roof Over Our Heads,' Escaping Violence: What the Child Tax Credit Really Means for MomsBeyond the ecstatic, viral TikToks is the sober reality of vegetables as 'luxury' items
Square Agrees to Acquire Afterpay for $29 Billion in All-Stock DealSquare agreed to an all-stock deal worth around $29 billion to acquire installment-payment company Afterpay Nice! $ALPP August is the turn-around month for Alpine, expected amazing financial report along with uplist to NASDAQ and then announcement of new acquisitions - it's going to go parabolic. For a group focused on ALPP and similar cracking stocks - come join us; this is terrible news
Student loan debt: 5 tips to make payments more manageableStudent loan debt is a problem for millions of Americans. Here’s everything you need to know to tackle your debt head on. The best way to pay off college debt is….learn a trade