Consumer Payment Card News

Wallet Squeeze

The amount that consumers pay on their monthly credit card balances
dropped like a rock in November to a record low. Generally cardholders,
including those who pay the minimum due and those who pay the full
balance off each month, pay on average, about 18% to 20% of their
monthly outstanding balances. During October cardholders paid 18.42% of
their balances which collapsed to 15.96% in November, the largest one
month drop ever. Clearly, the credit squeeze that began in mid-September
trickled down much faster than expected. The impact of job losses cannot
be understated. In December, the number of unemployed persons increased
by 632,000 to 11.1 million and the unemployment rate rose to 7.2%. Since
the start of the recession in December 2007, the number of unemployed
persons has grown by 3.6 million, and the unemployment rate has risen by
2.3 percentage points.

            Jun 08: 19.54%
            Jul 08: 19.54%
            Aug 08: 19.21%
            Sep 08: 18.57%
            Oct 08: 18.42%
            Nov 08: 15.96%

Leave A Reply