Americans paid off $10 billion in credit card debt in the third quarter (Q3) of 2020, but borrowed more for car and housing loans, according to a report in the Wall Street Journal (WSJ) citing the Federal Reserve Bank of New York.
This follows a record $76 billion drop in Q2 credit card debt, as people used COVID-19 stimulus money and pandemic unemployment to pay down financial obligations. According to the Fed’s latest quarterly report on household debt and credit, overall consumer debt hit $14.35 trillion, up $87 billion, a 0.6 percent increase over Q2.
