Credit card debt during the pandemic is dropping
Data suggests that Americans are responding to a down turned economy
The Facts Inside Our Reporter’s Notebook
In a sign that Americans don't see the coronavirus going away anytime soon, U.S. consumers are continue to drop credit debt.
After reporting a sharp drop in U.S. consumer credit in the previous month, the Federal Reserve released a report on Wednesday which found the amount of consumer revolving credit — which is predominantly credit cards — fell by $24 billion in May to $995.6 billion following April's record $58.2 billion decline.
The amount of consumer revolving credit, which is mostly credit cards, plunged by another $24 billion in May, the Federal Reserve said Wednesday.
The shrinking debt highlights how the virus outbreak and subsequent recession is changing consumer spending as U.S. households tried to avoid taking on new debt.