Our Drunken Sailors Still Not in Trouble with Their Credit Cards

August 09, 2023

by Wolf Richter Wolf Street

Keeping an eye on them because some day enough of them will get in trouble to move the needle. But not yet.

The most important thing about credit card balances is that they’re largely a measure of spending – rather than borrowing. Credit cards are the dominant consumer payments method in the US. About $5 trillion in spending was paid for by credit cards in 2021, according to the Federal Reserve’s most recent payments study. The amount would be much higher in 2023 because prices have gone up, spending overall has increased, and people have gone on a travelling binge, and nearly all travel expenses are run through credit cards.