Study: Americans more willing to pay down, take on credit card debt

American consumers paid off $35 billion in credit card debt in first fiscal quarter of 2015, study shows.

Smiling woman paying for coffee by credit card

GRAND RAPIDS, Mich. (WOTV) – On Monday, June 8, 2015, CardHub released its latest credit card debt study that delivered good and bad news on the state of the U.S. economy.

CardHub’s analysis shows in the first fiscal quarter of 2015, U.S. consumers paid down $34.7 billion in amounts owed to credit companies – 7 percent more than in the past two years. However, those numbers could be inflated because Americans ended 2014 with more than $57 billion in new debt, raising the average household balance of credit card debt to $7,177, the largest amount in six years.

CardHub predicts 2015 will end in a similar pattern as 2014 – with American consumers more willing to spend money, debt being paid down and new debt being taken on. The analysis predicts Americans will hold approximately $55.8 billion in credit card debt at the end of the year – a slight decrease from last year.

“First quarter paydowns are the norm – as consumers are fueled by annual salary bonuses, tax refunds and New Year’s resolutions” (to pay down debts,) according to CardHub CEO Odysseas Papadimitriou.

The study also notes credit card defaults declined by more $350 million in the first quarter of 2015 compared to the first quarter of 2014 – the lowest point for a first quarter since 1995.

Read more details from CardHub here.

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