Eurodollar University Consumers Just Pulled the Trigger on Credit Cards (Brace for Impact)
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Jan 11, 2026 US consumers are dramatically pulling back on credit card usage, signaling a shift in financial behavior. Recent data shows a decline in revolving credit for the third time in seven months. Meanwhile, job-finding expectations are plummeting, highlighting a growing fear of payment difficulties. Payroll reports suggest that employment figures may be overstated, indicating deeper job losses. The intertwining issues of declining credit, consumer sentiment, and employment paint a concerning picture of the economic landscape.
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Credit Card Use Is A Cyclical Signal
- U.S. revolving consumer credit has declined, signaling consumers are actively pulling back on card use.
- This decline reflects changing perceptions about jobs and incomes, not primarily interest rates.
Jobs And Cards Move In Tandem
- Revolving credit and the establishment payroll survey moved together, both weakening through 2024 into 2025.
- The mid-2024 lending and hiring burst was artificial and did not sustain into 2025.
Shadow Lenders Pull Back On Installments
- Finance companies and credit unions stepped in after 2023 when banks pulled back on installment lending.
- In 2025 those nonbank lenders tightened, with finance company loans declining and credit union lending flatlining.