NEW YORK (WWTI) — Americans are expected to start the new year with a significantly less amount of credit card debt.
A recent study conducted by WalletHub determined national credit card debt statistics and rates; finding a significant decrease in debt compared to the start of 2020.
According to the study, United States consumers started 2020 owing over $1 trillion in credit card debt. This debt was accumulated following a $76.7 billion net increase during 2019.
However, WalletHub determined that during the pandemic, consumers paid down $58.8 billion in debt; creating new records for both the second and third quarters, credit card debt dropped for the first time in over three decades from April through September.
Resulting from these records, the study stated that U.S. consumers will end 2020 with approximately $89 billion less credit card debt.
WalletHub’s survey detailed the following regarding average credit card debt per household in the United States. The statistics refer to the third financial quarter during both 2019 and 2020 and the net change.
|Q3 2020||Q3 2020||Change|
|Average Credit Card Debt per Household||$7,849||$8,798||-10.8%|
|Total Credit Card Debt||$926.3 Billion||$1,024.2 Billion||-9.6%|
|Quarter Net Increase||-$0.7 Billion||$21.5 Billion||-103.26%|
Wallet Hub also provided tips for managing credit card debt as U.S. consumers start 2021. These include the following.
- Make a budget and stick to it
- Build and emergency fund
- Improve personal credit
- Try the “Island Approach”
- Repay most expensive debt first
- Evaluate personal employment situations
Additional findings from the study are featured below.
For more statistics on credit debt in 2020, visit the WalletHub website.
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