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 | |
| Q3 2010 | $806.1 | $790 | 8.49% | $16.8 |
| Q2 2010 | $816.6 | $800.3 | 10.90% | $21.8 |
| Q1 2010 | $829 | $812.4 | 10.12% | $20.6 |
| 2009 | $894.0 | $876.1 | $81.6 | |
| Q4 2009 | $894.0 | $876.1 | 9.4% | $20.6 |
| Q3 2009 | $893.5 | $875.6 | 10.1% | $22.1 |
| Q2 2009 | $905.2 | $887.1 | 9.77% | $21.6 |
| Q1 2009 | $923.3 | $904.8 | 7.62% | $17.2 |
| Q4 2008 | $989.1 | $969.3 |
(Source: CardHub.com, Federal Reserve)
Data Analysis:
Latest End of Year Projection: Consumers will not pay down any of their credit card debt in 2010.
Q3 2010
- In Q3 of 2010, outstanding credit card debt decreased relative to Q2 2010: $10,290,000,000
- In Q3 the credit card charge-off rate in dollars was: $16,767,283,050
- Consumer pay down: -$6,477,283,050
(a negative number indicates an increase in debt) - Relative to last year: 39% less than the increase last year
- CONCLUSION: Consumers accumulated almost $6.5 billion more credit card debt in Q3 than Q2 2010, given that the drop in outstandings is smaller than the dollar amount that was charged-off. This is 39 percent less debt accumulation than was accumulated in this quarter last year.
Q2 2010
- In Q2 of 2010, outstanding credit card debt decreased relative to Q1 2010: $12,152,000,000
- In Q2 the credit card charge-off rate in dollars was: $21,807,303,000
- Consumer pay down: -$9,655,303,000
(a negative number indicates an increase in debt) - Relative to last year: 146% more than the increase last year
- CONCLUSION: Consumers accumulated almost $9.7 billion more credit card debt in Q2 than Q1 2010, given that the drop in outstandings is smaller than the dollar amount that was charged-off. This is 246 percent more debt accumulation than was accumulated in this quarter last year.
Q1 2010
- In Q1 of 2010, outstanding credit card debt decreased relative to Q4 of 2009: $63,700,000,000
- In Q1 the credit card charge-off rate in dollars was: $20,554,226,000
- Consumer pay down: $43,145,774,000
- Relative to last year: 9% less than the decrease last year
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CONCLUSION: Consumers paid down their credit card debt in a big way. Consumers actually paid down around $43 billion of credit card debt. This pay down is 9% 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: $81,602,885,000
- Consumer pay down: $11,595,115,000
- 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 $81.6 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 $11.6 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: $20,588,820,000
- Consumer pay down: -$21,078,820,000
(a negative number indicates an increase in debt) - CONCLUSION: In Q4 of 2009, outstanding credit card debt went up by over $21 Billion, when the $20.6 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: $22,109,657,500
- Consumer pay down :-$10,643,657,500
(a negative number indicates an increase in debt) - 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: $21,667,319,800
- Consumer pay down: -$3,929,319,800
(a negative number indicates an increase in debt) - 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: $17,237,087,700
- Consumer pay down: $47,246,912,300
- CONCLUSION: Consumers paid down their credit card debt in a big way! Consumers actually paid down around $47.2 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: Q2 2010 Credit Card Debt Study. Some of the numbers might differ between the two studies because the Federal Reserve updates it’s numbers for at least a few months after publishing them.
