Credit card debt is soaring, but banks aren’t attracting anyone to new deals as COVID-19 proves to be less of a boon for creditors than they might have thought. Weaker personal income growth and rapid job losses are pushing Americans into more debt, while banks are simultaneously tightening lending standards to reduce risk.
A survey by CreditCards found that nearly half of U.S. adults are carrying debt on their credit cards, up from a month ago, while 1 in 4 of those already in debt have piled on more.
The Federal Reserve Bank of New York reported that with a total of $14.3 trillion, U.S. household debt rose by $155 billion in the first quarter from the previous three-month period, or 1.1%.
Alarmingly, that’s also $1.6 trillion higher than the previous peak of $12.7 trillion reached in 2008.
Overall, the number of people with credit card debt has increased to 47% from 43% since early March…CLICK for complete article