Even As Americans Swim In Debt, They Still Hold Up Fine, Says Bank

Americans are carrying more debt than ever, but so far, borrowers appear to be managing, according to financial results from Synchrony, Forbes Daily reported.

Repayment rates have improved, with more customers now paying back their loans than anticipated. I Photo: Synchrony PR Newswire

The performance of the Connecticut-based bank offers insight into the health of U.S. consumers, as Synchrony claims one in every four American adults holds one of its cards.

The company issues co-branded credit cards and point-of-sale loans for major retailers like Sam’s Club, Lowe’s, and PayPal.

After a pandemic-era spike in defaults, Synchrony CEO Brian Doubles said repayment rates have improved, with more customers now paying back their loans than anticipated.

While Doubles remained optimistic about growth for the year, some analysts are more cautious. One noted that many of Synchrony’s customers have below-average credit scores, making them particularly vulnerable to inflationary pressures.