Consumer Payment Card News

October Debt

Consumer revolving credit continued its upward spiral in October as Americans tacked on $6.4 billion in net new debt, mostly credit card debt, compared to the prior month. In September consumers added $4.5 billion and in August revolving credit expanded by $7.9 billion. Revolving consumer credit has now reached a record $928.5 billion and is growing by 8.3% per annum. Based on revised figures, revolving debt rose 6.0% in September and 10.6% in August. According to data released by the Federal Reserve, total revolving credit has expanded by $53 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 $2490 billion in debt, excluding home mortgages.

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