Consumer Payment Card News

Debt Pace

Revolving debt is growing about a third of last year’s rate, as Americans added $1.2 billion to total revolving debt during August. One year ago, U.S. consumers added $3.9 billion to revolving debt during the month of August. However, the August figures, released Tuesday by the Federal Reserve, represented a sharp increase over the prior two months. During June consumers reduced total revolving debt by a revised $2.0 billion, and in July revolving credit was up 80 basis points or by $500 million. Bank credit card debt (excluding store and gas credit cards) at the end of the second quarter was $646.2 billion, or roughly 90% of total revolving credit, according to CardData (www.carddata.com).

                     REVOLVING CREDIT HISTORICAL ($billions)
                 Aug03   Jul 03    Jun03     May 03  Apr 03  Mar 03  Feb 03
  GRWTH:          2.1%      0.8     -2.4        7.7     3.4     4.1     5.9
  $OWED:        $727.6    726.4    725.9      727.9   722.8   720.7   718.6

                 Jan03   Dec 02  Nov 02   Oct 02  Sep 02  Aug 02  Jul 02
  GRWTH:          5.2%     -6.7    -1.4      1.6     3.0     6.2     6.0
  $OWED:        $715.5    712.4   716.8    717.9   721.3   719.5   715.6
              Source: Federal Reserve; revised figures as of 10/07/03;
             For complete historical data visit CardData (www.carddata.com).

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