It was the best of times and the worst of times, and the balance is reflected in America’s credit card bills.
Some people, especially under 40, went deeper in debt, and some people, especially older, took advantage of a break from shopping to pay off or at least down credit card balances.
“We see total credit card debt is 15% lower now than it was at the start of the pandemic, according to the New York Fed,” says Ted Rossman, Sr. Industry Analyst at Bankrate.com. “Unfortunately, though, a lot of people have added to their credit card debt.”
A Bankrate.com survey found 42% added on to their balance. 47% of those blamed the pandemic for their increase.
“Much of it happens along age lines. It seems 40 is the tipping point. If you’re under 40 there is a much greater chance that you added to your credit card debt,” Rossman adds.
54% of Americans carry a credit card balance.
photo: Getty Images