American credit card accounts dropped by $76 billion, their steepest decline on record, between April and June, that comprised the most restrictive interval of this Covid-19 lockdown. The New York Fed started tracking household credit and debt in 1999.
Entire household debt dropped by 0.2% to $34 billion in the next quarter. This was the first decrease in Americans’ debt burden because the second quarter of 2014, and the biggest fall since the second quarter of 2013, the New York Fed said.
However, non-housing debt balances dropped by $86 billion, the largest decline on record.