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
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:

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 updated study here: Q1 2010 Credit Card Debt Study