U.S. credit card debt dropped 5.2 percent in the first quarter of 2012
Tom Smart, Deseret News
Outstanding credit card debt in the U.S. dropped 5.2 percent to $803 billion during the first quarter of 2012, marking the third consecutive first-quarter drop, according to a recent study from CardHub.com.
Though first quarter figures have dropped, the total debt is slightly greater than the $794.4 billion reported for the same time last year.
The $35.8 billion paid down in the first quarter is 12 percent higher than in 2011, but it’s 8 percent lower than 2010.
This may be a sign that the U.S. is on track to have a pace similar to 2011 in which Americans incurred about $53.4 billion in new credit card debt, according to Card Hub.
“It’s clear that most of us have yet to truly internalize the reality that we cannot continue spending in this reckless manner,” Odysseas Papadimitriou, chief executive officer of Card Hub, said in a statement. “The problem is that we see signs of the nation’s economy recovering and think we can return to pre-recession spending levels. Unfortunately, pre-recession spending was inextricably tied to the housing bubble, and without another one, we cannot turn back the clock."
The amount of debt banks charged off dropped about 37 percent to 8.8 percent from 2011 figures.
- Twitter tries to block images of James Foley...
- Facebook makes the most obvious move ever...
- 7 benefits of taking vacation time
- Raising a kid will cost you $245,000 —...
- Utah exceeds Gov. Herbert's jobs goal
- Proposed collector natural gas lines in Moab...
- Dave Ramsey says: Don't make comparisons when...
- 12 kinds of late-night office emails
- Emerging solar plants scorch birds in... 14
- Raising a kid will cost you $245,000... 10
- Proposed collector natural gas lines in... 7
- Utah exceeds Gov. Herbert's jobs goal 6
- Twitter tries to block images of James... 4
- Balancing act: Readers dispute... 4
- Dave Ramsey says: Don't make... 4
- Facebook makes the most obvious move... 2