Consumer Payment Card News

May Debt

Consumer revolving credit jumped significantly in May following a pancake in the prior two months. Americans racked up $7.2 billion in net new revolving debt in May after tagging on about $200 million in April. Revolving consumer credit has now reached a record $894.8 billion and is growing by 9.8% per annum. Based on revised figures, revolving debt rose 0.2% in April and 8.7% in March. According to data released yesterday by the Federal Reserve, total revolving credit has expanded by $16 billion since the start of the new year. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was about $730 billion or roughly 82% of total revolving credit, according to CardData (“www.carddata.com”www.carddata.com). Store and gas credit cards had about $105 billion in outstandings at year-end 2006. At the end of April, Americans were $2441 billion in debt, excluding home mortgages.

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