Consumer revolving credit, mostly credit card debt, has been declining at a much faster pace in 2009 than previously reported and continued its rapid downward spiral in June. Posting its tenth consecutive monthly decline, U.S. consumer revolving credit dipped to $917.0 billion in June. Since peaking at a revised $973.5 billion in the third quarter of last year, Americans have chopped-off about $56.5 billion in revolving credit to-date. According to new and revised data released by the Federal Reserve, revolving credit declined at an annual rate of 6.8% in June, following a revised 6.3% decline in May and a 11.7% drop in April. In May revolving credit declined to a revised $922.3 billion and to a revised $927.9 billion in April. February posted the largest contraction over the past eight months, dropping nearly $13 billion, declining at an annual rate of nearly 14%. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was about $780 billion or roughly 85% of total revolving credit, according to CardData (www.carddata.com). Store and gas credit cards had about $105 billion in outstandings at year-end 2008. At the end of June, Americans were $2503 billion in debt, excluding home mortgages.
REVOLVING CREDIT HISTORICAL ($billions) Jun 09 May 09 Apr 09 Mar 09 Feb 09 Jan 09 GRWTH: -6.8% -6.3 -11.7 -8.9 -13.9 -0.7 $OWED: $917.0 922.3 927.9 936.2 948.4 961.0 Source: Federal Reserve; revised figures as of 8/7/09; For complete historical data, visit CardData (www.carddata.com)