In the United States of America, the most popular way to pay for things is with a credit card. The US economy has moved from a cash based system to a credit based system. As a result, the total debt in the United States because of credit cards has risen to nearly 1 Trillion Dollars. In 2015 by itself, the national credit card debt rose 71 billion dollars.
This makes the United States of American the leader in credit card debt, with more debt than the next 5 countries combined.
The reason for this is that most people across the Asian continent do not pay by credit, and rather by cash. For example, in India, most people use cash for every purchase they make in their lives. In other countries, the economy is not safe enough for people to get loans and mortgages, so they have to pay for everything they can with cash.
Recently, however, there has been a push to increase the use of credit cards in India, and an attempt to move those economies from cash to credit.
These banks and debit companies have also been marketing cards very heavily to American customers, through the use of reward programs and bonuses. Even though some people only use the cards for their rewards, there are others who end up in crippling debt, which is how these companies make their money.
Experts are worried about this trending debt, as the average consumer has to take on more and more debt to just stay afloat after the 2008 downturn. This is due to the mounting cost of living in the larger cities, and the lack of growth in salaries.
However, not all this news is bad. It seems that Americans are well aware of the dangers of using credit cards, because credit card delinquency is at its lowest point since 1991. This means that most people are very careful to not let themselves run into debt and forget to pay their minimum payments each month.
In the end, this increase of credit card usage is a sign that more people are confident in the economy, as they are willing to take on repayable debt. If they believed that the economy would fail, they wouldn’t be spending more and more credit.