America’s almost-$1 trillion credit card habit, like the Covid-19 pandemic, is a story of haves versus have-nots, says johnsfoley.
The average household cut credit card spending by a 40% year-on-year by the end of March as the Covid-19 pandemic hit, according to the JPMorgan Institute, which conducted a study of 8 million families who actively use cards issued by its parent group JPMorgan.
The study showed a slightly bigger percentage drop in spending for higher-income households. It attributed this in part to a higher weighting of non-essential items, which made up 70% of the wealthiest quartile’s overall spending in April 2019, compared with 61% for the least wealthy. Other credit card issuers including Bank of America, Citigroup and Capital One warned at their first-quarter earnings of a steep fall in spending by credit card customers, as they increased their reserves to cover future bad loans.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Who's responsible for your kids' unauthorized credit card charges?Here's how to get a refund and protect your credit card if your child uses your credit card to rack up unauthorized in-app game purchases or other items.
Read more »
Bill Murray Jokes He Doesn't Get Enough Credit For His Work in 'Space Jam'The actor told Jimmy Kimmel that Michael Jordan gets all the praise for a game he helped win.
Read more »
First look: Credit card spending plungesReal-time data on credit card transactions in the coming months will tell us a lot about how the reopening is going and how fast the economy can recover
Read more »
Breakingviews - Bad-debt puzzle has simple answer: consumer credit(Reuters Breakingviews) - Banks’ pandemic bad-debt charges paint a bewildering picture. JPMorgan Chief Executive Jamie Dimon set aside roughly $8 billion for dud credit in the first quarter, equivalent to over 3% of the U.S. group’s loans on an annualised basis. By contrast Deutsche Bank’s Christian Sewing increased the German lender’s bad-debt reserves by a piddling 500 million euros - just 0.4% of total lending.
Read more »
Fed's credit operation launched, but job already doneThe Federal Reserve's pledged support for exchange-traded funds may not end up costing the central bank much, but will still have the desired effect of keeping the credit market afloat.
Read more »
Here's the best credit card to apply for if you have fair or average credit and don't want to pay any feesIf you're afraid your credit score is holding you back, there's one card you may qualify for that offers cash back and no fees whatsoever: the Petal Visa Credit Card.
Read more »