CREDIT CONCERN

During the month of June, outstanding credit card balances dipped $1.1 billion and that followed a $3.8 billion decline in May. Balances have now declined in three of the last four months, and over the past year credit balances have slipped $33 billion, or 2.5% Y-o-Y. This is a phenomenon we haven’t seen since spring 2021 and speaks to the cautious and frugal mentality being exhibited primarily by lower-end households.