Americans Cut Credit Card Use, Debt – By Bill Hardekopf
WASHINGTON (TheStreet) — Americans are cutting their credit card debt and using their cards less, according to a new report from the Federal Reserve.
Recent studies underscore some trends in credit card usage.
- The number of new credit cards issued declined 45% last year, according to Equifax Consumer Credit Trends.
- The average balance on Visa(V), MasterCard and American Express(AXP) accounts dropped 5% to $5,434 in the fourth quarter from $5,729 a year earlier.
- According to a BIGresearch survey in January, 31% of respondents said they pay with cash more often, up from 23% a year earlier. The same study showed that 38% of consumers plan to pay down debt during the next three months, up from 34.4% in December.
- Issuers will reduce credit card lines by $2.1 trillion during the next 18 months, wiping out nearly 45% of the spending power U.S. consumers have on credit cards, predicts investment bank Oppenheimer.
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