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
2010	$825.7	$809.2		$75.0
Q4 2010	$825.7	$809.2	7.70%	$15.6
Q3 2010	$806.1	$790	8.55%	$16.9
Q2 2010	$816.6	$800.3	10.97%	$21.9
Q1 2010	$829	$812.4	10.16%	$20.6
2009	$894.0	$876.1		$83.2
Q4 2009	$894.0	$876.1	10.12%	$22.2
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)

2010

• In 2010, outstanding credit card debt decreased relative to its level in 2009: $66,934,000,000
• In 2010 the credit card charge-off rate in dollars was: $75,045,428,150
• Consumer pay down: -$8,111,428150
  (a negative number indicates an increase in debt)
• CONCLUSION: One might look at the $66.9 billion decline in credit card debt and come to the conclusion that consumer paid down their balances in a big way. The reality is, however, that entire decrease is the direct result of Americans defaulting on their debt.  In fact, the true picture is that Americans accumulated $8.1 billion additional credit card debt in 2010 relative to 2009. Like in 2009, the only quarter in 2010 that Americans actually paid down their debt was the first quarter of the year. Finally, unlike 2009, Americans ended 2010 with a net increase instead of a net decrease.

Q4 2010

• In Q4 of 2010, outstanding credit card debt increased relative to Q3 2010: $19,208,000,000
• In Q4 the credit card charge-off rate in dollars was: $15,576,830,500
• Consumer pay down: -$34,784,830,500
  (a negative number indicates an increase in debt)
• Relative to last year: 54% more than the increase last year
• CONCLUSION: In Q4 of 2010, outstanding credit card debt went up by $34.8 billion, when the $15.6 billion write-off is considered. This is 54 percent more debt accumulation than was accumulated in this quarter last year.
  

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: $16,885,779,750
• Consumer pay down: -$6,595,779,750
  (a negative number indicates an increase in debt)
• Relative to last year: 38% less than the increase last year
• CONCLUSION: Consumers accumulated almost $6.6 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 62 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: $21,947,349,900
• Consumer pay down: -$9,795,349,900
  (a negative number indicates an increase in debt)
• Relative to last year: 149% more than the increase last year
  
• CONCLUSION: Consumers accumulated almost $9.8 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 149 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: $20,635,468,000
• Consumer pay down: $43,064,532,000
• Relative to last year: 9% less than the decrease last year
  
• 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: $83,179,901,000
• Consumer pay down: $10,018099,000
• 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 $83.2 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: $22,165,836,000
• Consumer pay down: -$22,655,836,000
  (a negative number indicates an increase in debt)
• CONCLUSION: In Q4 of 2009, outstanding credit card debt went up by almost $22.7 billion, when the $22.2 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: Q3 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.