Credit card balances decline by 22 percent since their 2008 peak
from My Budget 360
Credit cards have been used as a lifeline and a way to live beyond one’s means in the United States for many years. Yet the current environment of deleveraging is hitting credit cards hard. The outstanding balance on credit card debt has reached a level last seen over a decade ago. This is positive since many were simply using credit cards as a method of spending money they did not have. Yet with access to debt becoming more restricted for households, how many people that once had credit cards have shifted to safety net programs like food stamps? It is impressive to see how the epitome of American debt spending in the credit card is contracting in this current environment. Americans are simply in the process of deleveraging and credit cards are one of those items that signal that debt growth does have a maximum tipping point.