Wealthy Splurge While Poor Tighten Belts as Credit Card Debt Soars

As credit card debt soars, lower-income earners tighten their belts on spending while wealthy consumers splurge on luxuries like dining and travel, reflecting a widening economic divide.

• Lower-income earners are cutting back on spending to focus on essentials, while wealthy consumers continue to spend freely on perks like dining out and luxury travel.
• Credit card lenders catering to wealthier customers like American Express and JPMorgan Chase saw spending rise around 6% in Q1, compared to a 4% drop at Synchrony which serves lower-income shoppers.
• More Americans are falling behind on credit card payments, with 11.1% making only minimum payments in Q4 2024 - the highest level in 12 years.