Consumer Paying Down Credit Card Debt During the Crisis

The Wall Street Journal is reporting on an interesting new trend with credit card holders; rather than racking up more spending during the economic crisis they are paying down their credit card debt; this is not just a U.S. phenomenon, it is happening in other advanced economies around the world; total credit card debt in the U.S. fell by 11%, or $100 billion, between February and June, while it is down 11% in Canada, 14% in the U.K. and 17% in Australia; data from card companies suggest that people have been using stimulus money to pay down their debt and then have shifted away from credit cards towards debit card purchases. The Wall Street Journal.

  • Peter Renton

    Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.