Pandemic derailed U.S. consumers making progress eliminating debt

The coronavirus pandemic has been a critical disrupter in all facets of life. According to a new study, consumer credit debt has been set back just as significant pay-downs were being made. According to a WalletHub study, consumers made impactful pay-downs during Q1 2020 before the virus took hold paying $60.4 billion in credit card debt, the highest pay-down since at least 1986.

Outstanding credit card debt dropped by roughly 6.5% compared to the previous quarter.

In the U.S., consumers owed more than $1 trillion in credit card debt after a $76.7 billion net increase during 2019 before the big paydown. “WalletHub now projects that U.S. consumers will rack up more than $140 billion throughout the rest of 2020, ending the year with a net increase of $80 billion in credit card debt,” the article reports. Read more here.

 

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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