Americans took on less bank card debt during the early months of the coronavirus pandemic, according to a report by economists at the St. Louis branch of the Federal Reserve, with total debt dropping 13% billion by the end of September.
The study, which examined debt from credit cards and other revolving accounts, reports a sharp fall in debt creation – people spending money – alongside a similarly sharp rise in debt destruction – paying off outstanding balances.
At the onset of the pandemic, American bank card debt was at its highest level, $903 billion. By September, that figure had dropped to $807 billion before it started ticking upward again.
