The State of American Debt Slaves: Q4 2020. Consumer Borrowing in Weirdest Economy Ever.

by Wolf Richter
Wolf Street

Amid enormous shifts and distortions in consumption and trillions of dollars handed out by the government and the Fed.

American consumers – those hundreds of millions of mythical creatures whose sole job is to consume more than they make – have paid down their credit cards again. In December, the crucial month for overspending with borrowed money, credit card balances and other revolving credit ticked down 0.3% from the prior month, to $976 billion, seasonally adjusted (green line in the chart below), according to the Federal Reserve Friday afternoon. This was down 10.8% year-over-year, the steepest year-over-year decline ever.

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