Consumer Payment Card News

Nov Debt

With the mortgage market drying up, the migration back to good ole’ credit cards has picked up steam as consumer revolving credit continued its upward spiral in November. Americans tacked on $8.8 billion in net new debt, mostly credit card debt, compared to the prior month. In October, consumers added $6.6 billion and in September revolving credit expanded by $4.5 billion. Revolving consumer credit has now reached a record $937.5 billion and is growing by 11.3% per annum. Based on revised figures, revolving debt rose 8.5% in October and 6.0% in September. According to data released by the Federal Reserve, total revolving credit has expanded by $62 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 80% 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 November, Americans were $2505 billion in debt, excluding home mortgages.

Leave A Reply