NEW YORK–Here’s something else for which 2020 will be remembered: American consumers have set an all-time record in paying down credit card debt.
According to a new report released by personal-finance website WalletHub, its Credit Card Debt Study, consumers repaid more than $119 billion in credit card debt through the first three quarters of 2020 – an all-time record.
WalletHub also released its 2021’s Cities with the Least-Sustainable Credit Card Debt study showing where consumers are in deepest when it comes to card debt.
Other findings from the WalletHub analysis:
- For the first time in 35 years, consumers paid down credit card debt during the third quarter of the year
- Credit card debt rose by $76.7 billion during 2019, and WalletHub now projects a decrease of $89 billion in 2020
- Credit card charge-off rates are down 17.3% compared to Q2 2020
“WalletHub is projecting consumers to add about $30 billion in credit card debt during the fourth quarter of 2020, leaving us with a decrease of about $89 billion in credit card debt for the year,” said Jill Gonzalez, WalletHub analyst. “If consumers do end 2020 owing less credit card debt than they started with, it would only be the second time in at least 35 years that’s occurred, with the other time being in 2009.”