Payment Card News

Oct Debt

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Consumer credit declined 60 basis points in October, the sharpest decline in more than 14 years. However, revolving consumer credit soared to a record of more than $863 billion in October. The decline was driven by a sharp drop in non-revolving credit which includes loans for automobiles, mobile homes, education, boats, trailers, or vacations. Based on revised figures revolving debt rose 4.9% in September and 8.9% in August. The growth slowed down to an annual rate of 4.1% in October. According to data released by the Federal Reserve, total revolving credit grew nearly $3 billion during October, compared to a revised $860.5 billion for September. Bank credit card debt (excluding store and gas credit cards) at the end of the third quarter was about $737 billion or roughly 86% of total revolving credit, according to CardData (www.carddata.com). At the end of September, Americans were $2378.4 billion in debt, excluding home mortgages.

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|_7. REVOLVING CREDIT HISTORICAL ($billions) |
|_. | Oct 06 | Sep 06 | Aug 06 | Jul 06 | Jun 06 | May 06 |
|_. GRWTH: | 4.1% | 4.9 | 8.9 | 6.7 | 10.1 | 13.0 |
|_. $OWED: | $863.4 | 860.5 | 857.0 | 849.8 | 845.1 | 829.3 |
|_7. Source: Federal Reserve; revised figures as of 12/7/06; |
|_7. For complete historical data, visit CardData (“www.carddata.com”:http://www.carddata.com) |

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