Major credit card companies have begun to reign in their credit standards for issuing credit in preparation for a potential economic downturn. 5.4% of credit cards that were originated in 2018 became delinquent within nine months of being issued. Nearly 2% of credit card borrowers are at least 90 days past due on their payments.
Christmas Gifts
Holiday shopping is also a contributing factor. Americans are anticipated to spend $184 billion dollars this year on Christmas gifts alone. 71% of holiday shoppers are planning on using credit cards to purchase this year’s gifts. In addition, 50% of shoppers are opting to purchase gifts online and charge additional delivery or shipping fees to their credit cards for added convenience. Approximately 48 million Americans are still paying off credit card debt from the 2018 holiday season.
For more information, contact your Fairfield bankruptcy attorney at 707-385-0422.