With U.S. unemployment still high and the economic recovery being so slow, it makes sense that households in Louisiana and around the country are cutting back their expenses. In fact, more than a year into the pandemic, it looks like Americans are being more careful about using their credit cards less than they have in a while.
According to news reports, the amount of credit card debt held by Americans went down by $49 billion in the first three months of 2021. At the same time, credit card spending is going up, especially recently. One credit card company said its customers spent 37 percent more in the first week of May than the same period last year and 21 percent more than the beginning of May 2019.
Good news for credit card users
While there are still many economic problems out there, reduced credit card debt is good news for consumers. Often, families dealing with job loss or reduced income have no choice but to put more household expenses on their credit cards. As they are forced to carry an increasingly large balance and struggle to pay the monthly minimum, they might be one emergency expense away from a crisis.
Will it last?
The fact that spending is starting to increase again could mean that more households feel financially secure again. But it may also lead to an increase in the national credit card debt soon. And that would mean more families looking for help getting their debt back under control.
For people struggling with credit cards or other forms of overwhelming debt, bankruptcy may be a good option.