Late-Cycle: The Stressed-Out, Tapped-Out American Consumer Just Paid Off A Ton Of Credit-Card Debt

Americans reject consumerism by paying off their credit cards – no wonder the US economy is tanking.

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A new report from WalletHub, the personal-finance website, could signal the U.S. economy is in late-cycle, as the stressed-out, tapped-out American consumer just rejected consumerism and has overwhelmingly decided to repair its overextended balance sheet instead.

While President Trump pedals the notion that the economy is the “greatest economy in HISTORY,” WalletHub noticed a considerable amount of Americans repaid $40.3 billion in credit card debt during the first quarter of 2018 — the second-largest quarterly payoff ever (via data from the U.S. Census Bureau, Federal Reserve and credit agency TransUnion).

Q1 2018 Credit Card Debt Paydown by City

Top 18 Largest Paydown Cities 

However, WalletHub noted that Americans started the fiscal year by “owing more than $1 trillion in credit card debt for the first time ever, after adding a post-Great Recession record $91.6 billion to our tab in 2017.”

With credit card spending went through the roof…

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9 thoughts on “Late-Cycle: The Stressed-Out, Tapped-Out American Consumer Just Paid Off A Ton Of Credit-Card Debt

  1. It is too bad that so many people bought into that credit card mess and amassed a shitload of debt that has to be paid down. Back in the day before the explosion of credit cards, people saved for big purchases. They did not spend beyond their means. They actually saved money and so had money for if the furnace broke down or the refrigerator stopped working. Now, everyone is encouraged to spend every dime they have and even money they don’t have just so long as they are buying things. Paying down credit card debt is a sad way to realize that credit purchases are not the way to go. The need for instant gratification leads to credit card debt.

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    • Too true, Shelby. I was raised to save for purchases and not spend money I don’t have. I blame a lot on our debt based money system. 98% of our money (this is everywhere – not just in the US) is created by private banks out of thin air when borrow money. Thus if everyone paid off their credit cards, there would be no money left to run the economy.

      I am dead serious about the link between people paying off their credit cards and the economy tanking. It’s high time we ban private banks from creating money and restore that function to government. We’re fighting for this type of reform in New Zealand.

      Liked by 1 person

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