U.S. credit-card balances are on track to hit $1 trillion this year, as banks aggressively push their plastic and consumers grow more comfortable carrying debt.
That sum would come close to the all-time peak of $1.02 trillion set in July 2008, just before the financial crisis intensified, and could signal an easing of frugal habits ingrained by the recession.The boom has been driven by steady economic conditions and an improving job market that have made creditworthy consumers less reluctant to take on debt.
In addition, lenders have signed up millions of subprime consumers who previously weren’t able to get credit.
...Capital One, the nation’s fourth-largest credit-card issuer, said credit-card sales jumped 14% in the first quarter from a year earlier.
The company’s strategy to boost card usage by raising spending limits and giving out more cards is also paying off:
Capital One customers spent 20% more on their cards during the first three months of the year than they did a year ago..."
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