The CEO of Synchrony Financial, the nation's biggest store credit card company, says Americans will have trouble staying current on their credit card bills once generous forbearance programs and the $600 boost to unemployment benefits fade away.
In normal times, that'd be good sign of financial responsibility. But in the pandemic era, it may just be the calm before the storm. Keane, the CEO of Synchrony Financial, the nation's biggest store credit card company, told CNN Business Americans will have trouble staying current on their credit card bills once generous forbearance programs and the $600 boost to unemployment benefits fade away. "People got forbearance on credit cards, mortgages and auto loans.
In another positive, Americans are taking this opportunity to chip away at their credit card debt. The amount of consumer revolving credit, which is mostly credit cards, has plunged by more than $100 billion since hitting a record high in February, according to the Federal Reserve. "Customers didn't go out and spend. They actually paid down debt and deleveraged," said Wenzel, the Synchrony CFO. Job cuts loomHistory shows credit card losses can be severe during recessions.
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