US residents pay debts on credit cards with unprecedented speeds. Banks are concerned about the growth of their consumer loan costs, reports The Wall Street Journal.
Positive dynamics in the solvency of the Americans affected the percentage income of the issuers of cards, as the remains on them are reduced. In this regard, banks are forced to spend more on advertising and insurance of their risks. Some credit organizations record the share of debt paid by Americans at the end of the first quarter of 2021 at the level of the historical maximum since 2000.
The losses declared Discover Financial Services, Capital One Financial, Synchrony Financial. The debts of borrowers of the three of these largest financial organizations of the United States decreased in the first three months of 2021, respectively, by 9, 17 and 7 percent to 2020.
Influence on consumer finance provided support for citizens by the American government due to coronavirus – unemployment benefits, lump-sum payments in the period of locked, delay in mortgage and other loans.
According to the research company Mercator ADVISORY GROUP, the number of open accounts on credit cards in America in 2020 decreased for the first time in seven years of stable growth. And according to the April survey, Gallup, 57 percent of US residents are satisfied or very satisfied with their current financial position.