Consumer Payment Card News

Sept Debt

Consumer revolving credit edged up in September as Americans continued to slow down their spending amidst lower credit limits and income. Revolving credit, mostly credit card related, rose by $900 million or 1.2% per annum, after adding more than $5 billion in July. Based on revised figures, revolving debt rose by 0.4% in August after growing by 5.6% in July. According to data released by the Federal Reserve, total revolving credit has expanded by about $70 billion over the past twelve months. Bank credit card debt (excluding store and gas credit cards) at the end of the second quarter was about $825 billion or roughly 85% of total revolving credit, according to CardData (“www.carddata.com”:http://www.carddata.com). Store and gas credit cards had about $109 billion in outstandings at year-end 2007. At the end of September, Americans were $2588 billion in debt, excluding home mortgages. This figure is about $7 billion higher than the prior month.

           REVOLVING CREDIT HISTORICAL ($billions)
         Sep 08   Aug 08   Jul 08   Jun 08  May 08   Apr 08
GRWTH:    1.2%      0.4      5.6      3.4     7.1      0.3
$OWED:   $971.4    970.5    970.1    965.6   963.2    956.8
       Source: Federal Reserve; revised figures as of 11/7/08;
   For complete historical data, visit CardData (www.carddata.com)

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