Keep paying down those credit cards! The latest shows outstanding revolving credit dropped 3.4% from the year ago period to sit at $790.1 billion. These figures are down from the July figure of $792.3 billion after March, May and June actually saw increases for the first time since December 2010, breaking the downward trend seen over the past 2 and half years. With this, revolving consumer credit plummeted from its peak of $973.6 billion in August 2008 by a staggering $179.6 billion.
Beware! This comes at a time card issuers are seeking new ways to grow and are increasingly focusing on the non-prime consumer market, indicating credit standards are beginning to loosen. So avoid falling back into any old habits which may come with easy credit in the mail. With card issuers continue to work through elevated charge-off levels, they are focusing on new segmentation approaches and using new analytics and data types. Stay strong cardholders…stay strong!
CREDIT OUTSTANDING $ BIL MAY 10 830.0 JUN 10 825.8 JUL 10 818.0 AUG 10 814.5 SEP 10 805.6 OCT 10 803.2 NOV 10 797.0 DEC 10 799.7 JAN 11 795.5 FEB 11 794.0 MAR 11 790.6 APR 11 789.8 MAY 11 793.1 JUN 11 795.9 JUL 11 792.3 AUG 11 790.1 Source: CARDDATA.COM