Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Market
Credit card use rises, while balances fall
WASHINGTON (4/7/14)--While consumers have racked up higher credit card bills lately, they've also paid those balances down at a higher rate, according to the American Bankers Association's Credit Card Market Monitor, released last week.

Ending balances dropped by nearly 5% in the third quarter of last year, while credit card purchases generally grew, the report found.

"This suggests that consumers aren't just using their credit cards more, they are also more likely to pay off their monthly balance," said Kenneth J. Clayton, ABA's Card Policy Council executive director ( American Bankers Association April 2). "As a result, the amount consumers are paying in interest as a share of their outstanding credit card balance declined for the 13th consecutive quarter."

The report also found credit card users are spending more on discretionary goods and services, or the nonessentials, as discretionary spending levels jumped 3.5% year-over-year. Nondiscretionary spending climbed 1.4% as well.  

"(Consumers are) less concerned with the direction of the economy and their ability to keep debt at manageable levels," Clayton said. "Whether this trend will continue remains to be seen."

Credit cards tied to reward programs saw a 7.8% increase year-over-year, the report revealed, perhaps in part explaining the uptick in overall credit card spending. Clayton noted that increases in both spending and reward card use is beneficial for retailers and the broader economy.


RSS print
News Now LiveWire
Fryzel added @TheNCUA is fed. governmt, thereby will B criticized, but always tried 2 do what is right. McWatters still 2 B sworn in.2of2
19 minutes ago
Before @TheNCUA meeting adjourned, board member Fryzel said goodbyes, praised dedicated CU officials. 1of 2
21 minutes ago
.@TheNCUA revised budget is down by $1.1 mil for year ending Dec 31, 2014. That brings total revised budget to $266,920,296.
1 hours ago
.@TheNCUA says it will update it NCUA Guaranteed Notes (NGA) report on its website in October.
1 hours ago
Also carved out from the @TheNCUA fixed-asst plan, CUs with less than $1 million in assets.
1 hours ago