Americans paying off credit card debt faster than before the pandemic

U.S.

CHICAGO (NewsNation Now) — Large credit card companies say Americans have been paying off credit card debt at higher rates than before the pandemic.

Now, banks and card issuers that rely on making money off of debt are changing the way they do things. 

Liz Knueven, a reporter at Business Insider who covers personal finance, says after months of staying at home and not going out, many Americans are putting their money into paying off debt.

“People have been really spending a lot of time at home, they’ve been saving their money instead of going out,” said Knueven. “People are putting their money and their cash into debt instead of racking up debt on credit cards. I think that’s really going to be a great thing for people long term, especially as the economy starts to reopen a little bit.”

To make up for the somewhat surprising position, some credit card companies have leaned into different offers to attract spending.

“Credit card companies have been making tons of really short and quick offers to attract new customers,” said Knueven. “Chase and American Express, in particular, have been rolling out offers nonstop on their new cards and their co-branded cards just trying to pick up on those people interested in spending a little bit more…who are going back out.”

Watch the full interview with Business Insider’s Liz Knueven in the player above.

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