ADS - Credit card balances fall in Q1 amid stimulus support pandemic effects

While household debt in Q1 2021 rose overall, credit card balances fell by $49B, marking the second-largest quarterly decline in the history of the Federal Reserve Bank of New York's data going back to 1999.The lower card balances are likely due to the stimulus payments that consumers received in March and the continued effect of the pandemic on the economy. For example, international travel is still limited, and consumers may not yet feel comfortable heading overseas even if there were no travel restrictions."Credit card balances are $157B lower than they had been at the end of 2019, consistent with both paydowns among borrowers and constrained consumption opportunities," according to the New York Fed's Quarterly Report on Household Debt and Credit.Mortgage balances, which account for the largest chunk of household debt, increased by $117B during Q1, standing at $10.16T at the end of March.Auto and student loan balances also rose during

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Credit card balances fall in Q1 amid stimulus support, pandemic effects