Consumers Pay Down Record Amount of Credit Card Debt in 2020

Consumers paid down $82.9 billion in credit card debt in 2020, the largest paydown on record, according to a new report from WalletHub released today. In the fourth quarter, average credit card debt per household fell 12% year-on-year, and total credit card debt fell from $1.07 trillion in the fourth quarter of 2019 to $955.4 billion in the fourth quarter of 2020.

The average household credit card balance was $8,089 at the end of 2020, and 35% percent of consumers said that COVID-19 has made it harder to get into serious credit card debt. Looking ahead, WalletHub noted that 66% of consumers will try to lower the interest rate on their credit card debt in 2021.