We’re still contending with inflation, and I don’t think it’s going away anytime soon. But in spite of that, I still see four positive trends for you and your credit cards in 2022: credit card offers will increase and expand to the subprime market; consumer credit card debt will increase; balance transfer credit cards will make a comeback; and credit card issuers will embrace buy now, pay later options. [Yahoo News]
Holiday Shopping Fuels the Return of Credit Card Debt
Holiday shopping returned with a vengeance this year. But going into credit card debt is one gift you can’t return. In the fourth quarter, fueled by the return of holiday plans, consumers charged billions more on their credit cards. By the end of the year, Americans are now on track to end up with $70 billion more in credit card debt and the average household’s card balance is now $8,006, according to WalletHub. Balances are expected to continue to rise in 2022, ending the first quarter as much as 10% higher than a year ago, as more consumers apply for credit and increase their spending, according to a forecast by TransUnion. Usually, card balances decline in the first months of the year as borrowers pay off their holiday spending. [CNBC]
