Monthly payment rates, the amount that cardholders pay on their credit card debt, headed south to 19.27% in January and should continue downward as consumers migrate from home equity loans to revolving credit. Payment rates reached nearly 22% during 2006 driven by increased minimum payments and a strong economy. Consumer revolving credit hit a record of nearly $879 billion in January, growing at an annual rate of 1.1%. According to FitchRatings, the gross yield jumped 50 basis points in January to 18.28% and is 32 basis points above year-ago levels. Both measurements are for credit card backed-securities.
pre.
ABS METRICS
YIELD MPR
Aug 06: 17.86% 20.24%
Sep 06: 17.96% 21.06%
Oct 06: 17.58% 19.30%
Nov 06: 17.96% 19.82%
Dec 06: 17.78% 19.32%
Jan 07: 18.28% 19.27%
Source: FitchRatings