Payment Card News

May Debt

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Revolving consumer credit continues to be sluggish as Americans added modest debt during May, however, the expansion is substantially higher than one-year ago. In May 2004, consumers paid down $2.3 billion in revolving credit, compared to adding $800 million this year. Monthly payment rates have dampened growth in credit card debt, topping 19% during May. The higher payment rates are a combination of low interest rates for mortgages/home equity, consumer credit score gaming and rising debit card usage. According to the Federal Reserve, Americans owed $796.9 billion in revolving credit at the end of May, compared to $793.2 billion at year-end 2004. One-year ago revolving credit stood at approximately $739 billion. The annual growth rate is now 1.1%, compared to a negative 0.9% in the previous month and -1.0% one-year ago. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was about $659 billion, or roughly 83% of total revolving credit, according to CardData ( “www.carddata.com”:www.carddata.com ). At the end of May, Americans were $2127.4 billion in debt, excluding home mortgages.

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|_7. REVOLVING CREDIT HISTORICAL ($billions) |
|_. | May 05| Apr 05 | Mar 05 | Feb 05 | Jan 05 | Dec 04 | May 04 |
|_. GRWTH: | 1.1% | -0.9 | -1.0 | 1.9 | 6.3 | 3.9 | -1.0 |
|_. $OWED: | $796.6| 795.8 | 796.4 | 796.9 | 796.9 | 793.2 | 738.6 |
|_7. Source: Federal Reserve; revised figures as of 7/08/05; |
|_7. For complete historical data, visit CardData (www.carddata.com) |

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