CBA Rebuts Credit Card Crisis Claim, Says 39 Million New Cardholders Skew Debt Totals
Updated
Updated · consumerbankers.com · Jun 22
CBA Rebuts Credit Card Crisis Claim, Says 39 Million New Cardholders Skew Debt Totals
1 articles · Updated · consumerbankers.com · Jun 22
Summary
CBA said inflation-adjusted, per-cardholder credit card balances have stayed largely flat over the past decade, arguing The Century Foundation wrongly treated nominal aggregate debt as proof of a crisis.
43% of cardholders paid balances in full each month in 2024, up from 36%-40% before the pandemic, while debt-service payments were 5.28% of disposable income in the first quarter, below roughly 7% two decades earlier.
The banking group also said higher monthly payments and minimum payments do not by themselves signal distress, because consumers are repaying balances faster and payment rates remained above pre-2020 levels.
On pricing and policy, CBA argued APRs reflect Fed-driven rate increases more than bank margins, and said a 10% rate cap could cut off mainstream card credit for more than 150 million Americans.
The broader argument is that credit cards mainly help households absorb pressure from housing, food, health care and other essentials, rather than causing the affordability strain itself.