Good news...
U.S. Revolving Credit And Debt
According to a report, entitled National Household Debt And Credit Report, recently released by the Federal Reserve Bank, New York:
The average balance on credit cards and similar revolving credit mechanisms, while 4.3% lower than the 11-year peak of Q4 2019, increased during Q2 2022 by $46 billion to $887 billion. Consumer advocacy groups lay the blame on the goods and services cost inflation since mid Q1 2022.
REPORT:
https://www.newyorkfed.org/microeconomics/hhdc
It is important to note that the credit debt data presented in the report is a "snapshot", and so it includes credit card balances of accounts in which debt paid off fully on a monthly basis, and thus incur no interest accruals.
The Fed report estimates that the purchase of goods and services via credit cards has averaged $1.15 trillion, per quarter, since Q1 2020.
But because the total credit card balances outstanding in Q2 2022 grew by $46 billion, there is strong evidence that credit cards are used as a (perhaps "the")
primary payment method, and are to far less extenet used as a
borrowing method.... sensible consumer behavior, given the usurious interest rates most such mechanisms carry.
Balance And Debt re: Other Consumer Loans
The combined balance per other consumer loans mechanisms, e.g., personal loans, payday loans, and Buy-Now-Pay-Later (BNPL) loans, increased to $470 billion in Q2 2022, which is LOWER than their combined balance in 2002, fairly remarkable considering that they have endured 20 years of inflation and population growth.
Graph: CREDIT CARD BALANCE vs
OTHER CONSUMER LOAN BALANCE (2003 - Q2 2022)
View attachment 2630863
Source: Federal Reserve Bank of New York
