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Card Payments

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Monthly payment rates, the amount that cardholders pay on their credit card debt, soared in January to a record level, approaching 20%. The big increase was primarily driven by higher minimum payments and to a lesser extent by rising interest rates. Among credit card-backed bonds, the monthly payment rate hit 19.97% in January, compared to 18.90% in the prior month and 17.70% one-year ago. According to FitchRatings, the payment rate averaged 18.6% during 2005. Five years ago the monthly payment rate hovered around 15%. FitchRatings also says a growing dependency on short-term teaser rates and low-rate balance transfer offers may also be contributing to the higher MPR.

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|_2. Monthly Payment Rate |
|_. Jan 05:| 17.70% |
|_. Apr 05:| 18.52% |
|_. Jul 05:| 18.47% |
|_. Oct 05:| 18.65% |
|_. Jan 06:| 19.97% |
|_2. Source: FitchRatings |

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