Americans repaid their $ 49bn credit card debt in the first quarter when US recovery began, a development that Federal Reserve analysts described as “disruptive” and “surprising” in light of the economic recovery.
A report from the Federal Reserve Bank in New York states that total US mortgage debt hit $ 14.6tn in the first three months of the year, up 0.6% from the fourth quarter of last year, as mortgage repayments remain and car and student loans have increased.
However, the volume of U.S. credit cards has fallen by the second highest in the number of censuses since 1999, surpassing only the $ 76bn decline in the second quarter of last year when the epidemic forced U.S. economic losses, the New York Fed said.
“One of the most confusing aspects of debt consolidation is credit card debt,” New York Fed analysts said in a blog post. “The decline in the first quarter of 2021 is surprising because it is in stark contrast to the current economic downturn as the US economy recovers and recovers.”
The fall in credit card scores helped raise the number of cars and student loans, pushing non-housing costs to $ 18bn lower than the previous quarter. Start-up revenues, including repairs, reached $ 1.1tn, slightly lower than in the fourth quarter of last year, as retail sales rose $ 117bn to $ 10.2tn.
New York Fed analysts have warned in a blog that the “diversity and inconsistency” that causes an epidemic for consumer lenders means a reduction in credit card balances “should be interpreted with caution”.
But he added that “the increase in retail sales offers insightful ideas, patient programs, enhancing consumer confidence, and the need for ideas can help facilitate and help lenders reduce debt that has been cut”.
Fed investigators said it appears that low-income and low-income families are paying off credit card debt. But he added that young people have been borrowing more on their cards in recent months than adults are borrowing.
“We think this shows, to some extent, the different responses to the risks of the virus – young people resume their outdoor activities, while older people are more prone to risk, choosing to remain at home,” he said.
The re-establishment of the US currency by the government and banking programs also confirms the report.
Customer errors fell below their standard early in the epidemic. The New York Fed reports that 3.1% of total housing payments were during a period of crime, 1.5% lower compared to the first quarter of 2020.
House real estate has dropped dramatically in numbers since 1999.