The robust holiday season may mask a more troubling economic trend for retailers – credit card debt and write-offs.
Inc.com reports that, as Americans have exhausted their savings that they built up during the pandemic, many are relying exclusively on credit.
According to data published in November by the Federal Reserve Bank of New York, U.S. debt owed on cards rose by $24 billion to a total $1.17 trillion in the third quarter of this year, averaging out to about $1,181 per account holder.
A newer report found that credit companies are writing a lot of that debt off, realizing they will never get paid. This trend presents a tricky situation for businesses as consumers may have to shore up their spending, especially as proposed tariffs may inflate inflation again.
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