Plastic Pandemic: US Credit Card Debt Surges Nearly 20% in Q1 2021!

Is plastic growing rapidly out of control. Here is what you need to know.

  1. U.S. credit card debt has jumped nearly 20% in the first quarter of 2021, according to a report from TransUnion.
  2. This increase in credit card debt marks the highest quarterly growth rate since 2014.
  3. TransUnion attributes this surge to the rebounding economy and the distribution of stimulus checks.
  4. The average credit card balance per borrower is now $5,315, up from $4,453 in the first quarter of 2020.
  5. Despite the rise in credit card debt, credit card delinquency rates have decreased to a record low of 1.46%.
  6. Credit card issuers have also tightened their lending standards during the pandemic, making it more difficult for consumers to obtain new credit cards.
  7. The increase in credit card debt could lead to financial struggles for some consumers if they are unable to make their payments.
  8. Experts suggest that consumers prioritize paying off high-interest debt, such as credit card debt, to avoid accumulating more interest charges and potential financial hardships. – Source
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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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