erienewsnow.com 11 Jan, 2022 21:15 am

Americans are getting themselves back into debt - Erie News Now

Americans are getting themselves back into debt - Erie News Now
By Alicia Wallace, CNN Business

Flush with additional cash — from wage increases, stimulus payments, loan forbearance or just fewer opportunities for spending — consumers kept their credit card balances in check.Some of the latest consumer credit data show that credit card spending and debt levels are once again on the rise.The higher levels of credit card spending and increased debt loads are also indicative of spending patterns returning to normal, he added." Though credit card spending has ticked up from its pre-pandemic low, it's still a long way from its pre-pandemic peak, said Tim Quinlan, a Wells Fargo economist who last week published research showing that consumer spending is expected to remain strong in 2022.

During the coming months, Quinlan said he anticipates that savings rates may continue to fall while credit card balances likely will grow."People have been paying off their credit cards very quickly during the pandemic, and that's starting to slow as people have started to wear down their buffer of excess savings," said Leo Feler, senior economist with the UCLA Anderson Forecast.

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