Credit card debt may remain low, report says
Consumers have been taking steps to reduce their credit card debt, lowering payment delinquencies and using cash with greater frequency.
The total consumer credit debt is currently $822 billion, representing 6.4 percent of all debts, down 1.2 percentage points from 2004. At an aggregated rate, it has fallen nearly 15.5 percent since the Lehman Brother’s bankruptcy in 2008.
However, in recent months credit card debt has begun to rise again. Recent research suggests even if the downward trend reverses, it will take almost two years for the overall debt to start expanding, Forbes reports.
Economists predict this figure may be tied to the Gross Domestic Product, which is expected to stay low in the near future, the news source says. This may mean revolving credit may not rise to pre-recession levels soon.
The recent drops are the largest since 1968, when economists first began tracking credit debt, signaling to some economists that debt may remain at low levels for years to come.