Story perspectives

US Credit Card Spending Rises Amid Economic Strain

4/24/2025

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Summary

Story summary

US consumers demonstrate resilience, with Capital One reporting a 5% increase in credit card purchases, totaling $157.9 billion in Q1.
While debt repayment remains stable, inflation and high interest rates create stress for some consumers.
Credit card companies are tightening lending and boosting reserves due to rising delinquencies, targeting affluent customers.
Nonessential spending is declining, and lower-income individuals face reduced access to credit.

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Story summary

US consumers demonstrate resilience, with Capital One reporting a 5% increase in credit card purchases, totaling $157.9 billion in Q1.
While debt repayment remains stable, inflation and high interest rates create stress for some consumers.
Credit card companies are tightening lending and boosting reserves due to rising delinquencies, targeting affluent customers.
Nonessential spending is declining, and lower-income individuals face reduced access to credit.