According to an article posted on Fox Business, American credit card debt has fallen during the coronavirus pandemic, dropping below $1 trillion for the first time since September 2017. Credit card debt fell by $24 billion in may and $58.2 billion in April. Debt is down almost $100 billion from the start of the year. The shrinking debt highlights how the recession changed consumer spending as U.S. households tried to avoid taking on new debt.
The coronavirus has spared no one in it’s devastation of the U.S. economy. From iconic department stores to entertainment giants, many stores are now facing bankruptcy. CMX Cinemas:Filed for Chapter 11 bankruptcy on April 25. J. Crew:Filed for bankruptcy on May 4. Gold’s Gym:Filed for Chapter 11 bankruptcy on May 4. JCPenney:Filed for chapter 11 bankruptcy on May 15 and plans on announcing the first phase of store closing in the coming weeks. Pier 1
During this crisis, many credit card issuers are working to assist their customers by providing them with options to alleviate some of their financial burden. We’ve compiled a list of some issuers’ assistance efforts below. All measures are subject to individual eligibility and may not apply to all customers. American Express Advice on managing accounts onlineLower monthly paymentsRelief from late payment fees Bank of America Deferred paymentsRefunds on late fees Capital One Financial hardship support
As the New Year unfolds, watch out for the following retailers who may be filing for Chapter 11 bankruptcy in 2020. Pier 1 ImportsThe company plans to close 450 of its 936 stores, cut 40% of its headquarters staff, and close many of its distribution centers. Bed, Bath & BeyondThis big-box retailer plans to close 60 stores in 2020. Fundamentally, this company has been unsuccessful in battling online retailers. GameStopWill GameStop be the next blockbuster?
The New Year is a great time to take a look at your debt situation and set resolutions that can help you get closer to your goals. We’ve put together a few resolutions you might consider in 2020. Prioritize your debts: Make a list of your liabilities and organize them by interest rate. Plan to pay those with highest rates first. Open an IRA: If you haven’t already, talk to your financial planner about an