Is plastic growing rapidly out of control. Here is what you need to know.
- U.S. credit card debt has jumped nearly 20% in the first quarter of 2021, according to a report from TransUnion.
- This increase in credit card debt marks the highest quarterly growth rate since 2014.
- TransUnion attributes this surge to the rebounding economy and the distribution of stimulus checks.
- The average credit card balance per borrower is now $5,315, up from $4,453 in the first quarter of 2020.
- Despite the rise in credit card debt, credit card delinquency rates have decreased to a record low of 1.46%.
- Credit card issuers have also tightened their lending standards during the pandemic, making it more difficult for consumers to obtain new credit cards.
- The increase in credit card debt could lead to financial struggles for some consumers if they are unable to make their payments.
- 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