Consumers paid down $60 billion in credit card debt in the first quarter of 2020, the largest first quarter paydown on record, according to a new report from WalletHub released today. In the second quarter, consumers paid down $58 billion in credit card debt, the first second quarter decline in more than 30 years. Average credit card debt per household fell 8.2% year-on-year, and total credit card debt fell from $1.01 trillion in the second quarter of 2019 to $934.8 billion in the second quarter of 2020.
According to the report, the record reduction in credit card debt stems from generous unemployment benefits and austerity measures taken due to the pandemic and WalletHub noted that consumers are on track to end the year with a slight reduction in credit card debt for the first time since 2009.
