Revolving Debt in the United States: Ready to Charge, but Exercise Caution
- Date:December 09, 2021
- Author(s):
- Brian Riley
- Research Topic(s):
- Credit
- PAID CONTENT
Overview
Credit card issuers acted aggressively to restore revolving debt, thereby offsetting the interest revenue loss resulting from COVID-related changes in purchasing and borrowing habits. However, while growth results effectively rebuilt portfolios, credit card issuers must be cautious about growing with new, riskier accounts rather than established card accounts.
Book a Meeting with the Author
Related content
Rewiring the Credit Card Value Proposition: From Best Card to Best Relationship
High credit card interest rates are reshaping the economics of the industry, putting pressure on consumers while increasing risks of delinquencies and losses. Widening spreads, shi...
Klarna Gets Its Wrist Slapped Again: BNPL Brings Volume, but Not Credit Quality or Profits
Klarna’s buy-now, pay-later model is colliding with global regulation. A Netherlands court has invalidated consumer debts, ruling BNPL creates credit obligations—despite zero inter...
Co-Branded Credit Cards Smoke, Private Labels Choke
Co‑branded credit cards thrive when financial institutions and consumer brands join to create value neither could deliver alone. When designed well, these partnerships fuel custome...
Make informed decisions in a digital financial world