Consumer Payment Card News

May Card Debt

Consumer revolving credit growth continues to slow due to the apparent siphoning-off of credit card debt to home mortgage and equity loans. During May, Americans added $3.1 billion in revolving credit, mostly credit cards, compared to $3.3 billion one year ago. According to preliminary figures released this week by the Federal Reserve, revolving consumer credit stood at $725.0 billion, at the end of May, compared to $708.7 billion one year ago. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was $645.6 billion, or roughly 89% of total revolving credit, according to CardData (www.carddata.com). This compares to $660.9 billion at the end of 2002. According to the latest government figures, American consumers were $1.760 trillion in debt, exclusive of home mortgages during May.

                   REVOLVING CREDIT HISTORICAL ($billions)
          May 03  Apr 03  Mar 03  Feb 03  Jan 03  Dec 02  Nov 02
  GRWTH:    5.3%     2.0     4.1     5.9     5.2    -6.7    -1.4
  $OWED:  $725.0  721.9b   720.7   718.6   715.5   712.4   716.8

          Oct 02  Sep 02  Aug 02  Jul 02  Jun 02  May 02  Apr 02
  GRWTH:    1.6%    3.0%     6.2     6.0     4.1     8.0     4.8
  $OWED:  $717.9  721.3b   719.5   715.6   712.1   708.7   705.4

         Source: Federal Reserve; revised figures as of 07/08/03;
      For complete historical data visit CardData (www.carddata.com).

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