Average bank card balances are down nearly 9% since March. In a typical year, this metric goes down steadily in the first quarter, as people pay off their debt incurred during the holiday season from last year. Other factors, such as early tax returns and bonuses, bring the overall level of debt down in the first quarter.
Then, for the remainder of the year, average balances steadily tick up, leading into the November/December time frame where consumer spending peaks.
Needless to say, 2020 is very different ...
In the first three months, the numbers were trending right in line with 2019. Since April, we’ve seen a consistent decline in average debt.