Consumer Payment Card News

Sept Debt

Consumer revolving credit grew again in September, however the growth rate slowed following two months of 9% year-on-year increases. Americans tacked on $3.4 billion in net new revolving debt in September after racking up new debt of $7.0 billion and $6.7 billion in August and July, respectively. Revolving consumer credit has now reached a record $920.1 billion and is growing by 4.4% per annum. Based on revised figures, revolving debt rose 9.3% in August and 8.9% in July. According to data released by the Federal Reserve, total revolving credit has expanded by $43 billion since the start of the year. Bank credit card debt (excluding store and gas credit cards) at the end of the third quarter was about $754 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 September, Americans were $2482 billion in debt, excluding home mortgages.

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