Photo: Joe Raedle / Getty Images
For: Luis Diaz
Sunday, November 17
Americans, again in debt with their credit cards this holiday season
After reaching a historical record in the payment of a debt for 83 billion dollars in credit cards in 2020, Americans are on track to finish this again year with new debt.
Based on recent data from the Federal Reserve Bank of New York, overall, Credit card balances increased by $ 17, 000 millions of dollars throughout the first four months of this 202. During the last quarter of this year, buyers have added more money.
According to the federal bank, it is estimated that by the end of this year Americans are on track to reach a debt of $ 60, 000 millions of dollars more in credit cards.
The balances of Americans will continue to increase at the beginning of 2022, ending the first four-month period with a 10% more compared to 2021, as more consumers apply for credit cards and their purchases are on the rise.
Traditionally, card balances decrease at the beginning of the following year, since users make payments corresponding to what was spent during During the holidays, but with the months to come, expenses increase and debts also.
The Federal Reserve Bank indicated that towards the last four months of next year total balances are expected to reach $ 805. 7 trillion dollars, the highest level since the start of the Covid pandemic – 19.
Among the causes that respond to this problem, the difficulty of paying credit card debts is pointed out, since that the annual average rate is more than 16 %, finally, at the end of the government aid programs to attend the health contingency, people are opting for credits, so it is recommended that consumers take into account the new debt obligations that they could acquire this year.
Although many Americans will seek to acquire a card It is recommended that before acquiring it, an analysis of the financial and payment capacity is made in order not to incur in arrears or that the applicant has financial solvency problems.
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