Consumer Payment Card News

June Debt

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 ( 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 (

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