Consumer Payment Card News

August Debt

Consumer revolving credit grew again in August after topping the $900
billion milestone for the first time in June. Americans tacked on $6.2
billion in net new revolving debt in August after racking up new debt of
$5.6 billion in July. Revolving consumer credit has now reached a record
$915.5 billion and is growing by 8.1% per annum. Based on revised
figures, revolving debt rose 7.5% in July and 7.1% in June. According to
data released by the Federal Reserve, total revolving credit has
expanded by nearly $39 billion since the start of the new year. Bank
credit card debt (excluding store and gas credit cards) at the end of
the second quarter was about $740 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 August, Americans were $2470 billion in debt,
excluding home mortgages.

REVOLVING CREDIT HISTORICAL ($billions)
Aug 07 Jul 07 Jun 07 May 07 Apr 07 Mar 07
GRWTH: 8.1% 7.5 7.1 10.9 1.5 5.9
$OWED: $915.5 909.3 903.7 897.7 887.6 889.7
Source: Federal Reserve; revised figures as of 10/5/07;
For complete historical data, visit CardData (“www.carddata.com”:www.carddata.com)

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