Consumer Credit Card Debt and Charge-off Data (in Billions):
| Outstanding Revolving Consumer Debt | Outstanding Credit Card Debt | Quarterly Credit Card Charge-Off Rate | Quarterly Credit Card Charge-Off in Dollars | |
| Q1 2010 | $835.7 | $818.9 | 10.1% | $21.1 |
| 2009 | $894.0 | $876.1 | $83.3 | |
| Q4 2009 | $894.0 | $876.1 | 9.4% | $21 |
| Q3 2009 | $893.5 | $875.6 | 10.1% | $22.6 |
| Q2 2009 | $905.2 | $887.1 | 9.77% | $22.1 |
| Q1 2009 | $923.3 | $904.8 | 7.62% | $17.6 |
| Q4 2008 | $989.1 | $969.3 |
(Source: CardHub.com, Federal Reserve)
Data Analysis:
Q1 2010
- In Q1 of 2010, outstanding credit card debt decreased relative to Q4 of 2009: $57,134,000,000
- In Q1 the credit card charge-off rate in dollars was: $21,101,425,000
- Consumer pay down: $36,032,575,000
- CONCLUSION: Consumers paid down their credit card debt in a big way. Consumers actually paid down around $36 billion of credit card debt. This pay down is 23.2% less than what consumers paid down a year ago.
2009
- In 2009, outstanding credit card debt decreased relative to its level in 2008: $93,198,000,000
- In 2009 the credit card charge-off rate in dollars was: $83,268,250,000
- Consumer pay down: $9,929,750,000
- CONCLUSION: One might look at the $93 billion decline in credit card debt, and come to the conclusion that Americans paid down their balances in a big way. The reality is that $83 billion of the $93 billion decrease is the direct result of Americans defaulting on their debt. The real decrease in credit card debt is only $10 billion, the majority of which is due to a major decline in Q1 of 2009. After Q1 2009, Americans accumulated more and more credit card debt.
Q4 2009
- In Q4 of 2009, outstanding credit card debt increased relative to ts level in Q3 of the same year: $490,000,000
- In Q4 the credit card charge-off rate in dollars was: $21,009,000,000
- Consumer pay down (a negative number indicates an increase in debt): -$21,499,000,000
- CONCLUSION: In Q4 of 2009, outstanding credit card debt went up by almost $21.5 billion, when the $21 billion write-off is considered.
Q3 2009
- In Q3 of 2009, outstanding credit card debt decreased relative to its level in Q2 of the same year: $11,466,000,000
- In Q3 the credit card charge-off rate in dollars was: $22,560,875,000
- Consumer pay down (a negative number indicates an increase in debt): -$11,094,875,000
- CONCLUSION: Consumers accumulated more credit card debt in Q3 than Q2 2009, given that the drop in outstandings is smaller than the dollar amount that was charged-off.
Q2 2009
- In Q2 of 2009, outstanding credit card debt decreased relative to its level in Q1 of the same year: $17,738,000,000
- In Q2 the credit card charge-off rate in dollars was: $22,109,510,000
- Consumer pay down (a negative number indicates an increase in debt): -$4,371,510,000
- CONCLUSION: Consumers accumulated more credit card debt in Q2 than Q1 2009, given that the drop in outstandings is smaller than the dollar amount that was charged-off.
Q1 2009
- In Q1 of 2009, outstanding credit card debt decreased relative to its level in Q4 of 2008: $64,484,000,000
- In Q1 the credit card charge-off rate in dollars was: $17,588,865,000
- Consumer pay down: $46,895,135,000
- CONCLUSION: Consumers paid down their credit card debt in a big way! Consumers actually paid down around $46.9 billion of credit card debt.
For questions or more information regarding this study, please contact our media department.
Please find the study from the previous quarter here: Q4 2009 Credit Card Debt Study
