According to reports from CBS and CNN: In the past 30 days, a quarter of Americans, about 50 million people, have had their credit card limits reduced, and many credit card accounts have even been closed.

Giving out umbrellas on sunny days and keeping them on rainy days has always been the golden rule of lending institutions. When people’s cash flow is tight due to unemployment, 4 million people have lost their housing loans, and more than 10 million people cannot pay rent. They are looking forward to using credit cards. As we weather the storm, U.S. credit card institutions have tightened lending limits.

The U.S. Federal Reserve (Fed) stated that the nation’s total credit card debt is approximately $1.1 trillion and has been growing steadily since 2015.

Americans are a country supported by credit cards. On average, each American resident has two credit cards. Almost all life needs such as shopping, water and electricity, catering, and travel can be met through credit cards.

What’s terrible is that so many Americans use credit cards to buy cars, houses or other valuable goods on installment, and they only pay the minimum payment every month.

In other words, Americans’ consumption is all about overdraft and advanced consumption. They have very little cash in their hands, and they rely on so-called credit and borrowing to survive.

Once their credit card limit is limited or their account is closed, it will have an irreparable impact on the credit of ordinary Americans. This may interrupt the cash flow of ordinary Americans and affect their daily consumption such as food, clothing, housing and transportation. , it is more likely that their default will lead to a major credit card debt crisis similar to the '2008 subprime mortgage crisis'.

CBS Senior Business Analyst Jill Schlesinger said: In fact, before the new coronavirus, the number of people who were delinquent on their credit card payments reached a seven-year high, and many credit card accounts were in arrears for a long time. Cannot be paid in full. ”

Schultz added: At present, there is no clear statistics on how much credit card limits will be reduced, but it can also be estimated that each credit card will be reduced by thousands of dollars.

5,000 The news that the credit card limits of ten thousand people have been reduced has shocked the United States. This is similar to the 350 million people in China who have had their mortgage limits reduced or canceled directly.