Our Finance Guide
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
Our Finance Guide
No Result
View All Result
Home Credit Cards

The credit card debt paydown miracle that took place during pandemic is ending

admin by admin
August 3, 2021
in Credit Cards
0
The credit card debt paydown miracle that took place during pandemic is ending

Ask a consumer expert what would happen with credit card loan balances during a recession and the answer wouldn’t be that balances decline sharply and Americans avoid a wave of card delinquencies.

But that’s what happened during the pandemic year. Helped by government stimulus and limited to spending on necessary goods rather than discretionary items, consumers bucked economic downturn history when it comes to credit card debt.

Related articles

U.S. ready to help Mexico finance solar plans, Lopez Obrador says

How-to Alter your Credit having Payday loan Shelter

″It’s been an upside down credit environment,” said Stephen Biggar, who covers financial institutions at Argus Research. “If you told me the market was going to crash 40% and we would have 20% unemployment, you would have also said card delinquency rates would go through the roof, particularly for the lower-end consumer.”

The savings rate spiked to a level not seen since World War II, and that caused consumers to take the cash they had and pay down debt — and often the first kind of debt they paid down was cards, which have among the highest interest rates, averaging 16%.

According to Experian, from Q3 2019 to Q3 2020, credit card balances fell 24%. Among active credit card holders right before the pandemic, 58% carried a balance month-to-month, an interest-rich pool for card issuers that is now down to a record low of 53%, according to the American Bankers Association.

“Lots of people made lots of progress paying down debt and we would not have thought that at the outset of the pandemic,” said Ted Rossman, senior industry analyst at CreditCards.com.

 

Read more…

admin

admin

Related Posts

U.S. ready to help Mexico finance solar plans, Lopez Obrador says

MEXICO CITY, Dec 20 (Reuters) - The United States is offering to help Mexico with loans to finance planned solar power stations in the northern state...

How-to Alter your Credit having Payday loan Shelter

Most people that have bad credit getting he has got no other possibilities than to get a quick payday loan when in a bind. If you...

Best Virtual Credit Cards for December 2022

Virtual credit cards allow you to keep your identity safe online by masking your personal details.Credit card fraud affected over 13 million Americans in 2021, and...

5 Ways Credit Cards Can Beat Buy Now, Pay Later Plans

At first glance, a “buy now, pay later” plan’s promise of no interest or upfront fees can seem more appealing than a credit card’s terms. Dividing...

Is Using Your Credit Card About to Get Cheaper?

When it comes to credit card processing, Visa and Mastercard are practically the only game in town. Here, we'll tell you how retailers are fighting back...

Next Post
Investing $400 Per Month in This ETF Could Make You a Multimillionaire

New To Investing? Here Are Some Common Mistakes To Avoid And Tips To Follow

Student Loan Cancellation Just Got More Complicated

Best Loan Companies Ratings Expanded With Student Loan Refinance Category

Monthly child tax credit payments may mean a big tax surprise in the spring for some parents

Will I Receive The Child Tax Credit in 2022?

No Result
View All Result

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

RECOMMENDED

Loans Available Through Heirs’ Property Relending Program
Loans

Loans Available Through Heirs’ Property Relending Program

You Might Consider Opting Out Of The Child Tax Credit. Here’s Why
Tax

Child tax credit issues? What to do about delays, missing payments and wrong amounts

CATEGORIES

  • Credit Cards
  • Investing
  • Loans
  • Tax
  • Uncategorized

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

© 2022 Our Finance Guide, All Rights Reserved.

  • Contact Us
  • Privacy Policy
  • Terms Of Service
  • Unsubscribe
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing

© 2022 Our Finance Guide, All Rights Reserved.