Americans Are Carrying More Credit Card Debt: Study
Americans are carrying more credit card debt than a year
ago, yet the late-payment rate for card holders remains near an 18-year low, an
analysis of consumer-credit data shows.
The average credit card debt per borrower in the U.S.
grew about 6 percent in the second quarter from a year earlier, credit
reporting agency TransUnion said Tuesday.
At the same time, the rate of payments at least 90 days
overdue inched higher to 0.63 percent from 0.60 percent in the same period last
year, when the rate hit the lowest level in 18 years. Card delinquencies sank
to 0.56 percent in the third quarter of 1994, the firm said.
The April-to-June figures reflect how consumers have been
managing their credit card use since the start of the last recession toward the
end of 2007.
Many borrowers have taken steps to save money and whittle
down their debt. Among homeowners with a mortgage, many have made credit card
bills a priority over their home loans and other financial obligations.
While late payments hover near lows not seen since the
1990s, cardholders have been racking up more debt.
In the second quarter, the average credit card debt per
borrower rose 6 percent from a year earlier to $4,971, TransUnion said. That's
still about 13 percent less than $5,719, the average credit card debt per borrower
in the second quarter of 2009. The latest figure was essentially flat from the
first quarter of this year.
Between 2009 and 2011, borrowers pulled back on using
credit and made an effort to slash their debt.
Average credit card balances also rose on an annual basis
in the first three months of the year, as hiring picked up nationally and
consumer confidence improved. It's too early to tell whether credit card debt
will continue to climb, however.
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