As expected U.S. revolving consumer credit outstanding declined $3.7 billion or 5.0% year-on-year (YOY) in February as consumers cleared-off holiday debt. Total revolving credit for February preliminarily posted $884.8 billion, compared to a revised $888.5 billion for the prior month and $889.5 billion at end-of-year (EOY) 2014.
According to the Federal Reserve, during 2014 revolving consumer credit outstanding rose from $857.6 billion at EOY 2013 to $889.0 billion on Dec 31st.
U.S. credit card outstandings for the four major networks rose 4.9% last year with American Express leading the charge with a 7.2% year-on-year (YOY) increase. U.S. card loans (including securitized receivables) hit $878.0 billion at end-of-year (EOY), according to CardData.
However, aggregate U.S. bank credit card outstandings for the nation’s four largest issuers declined 1.4% year-on-year (Y/Y) in the fourth quarter. Growth has been essentially flat over the past two years, according to CardData.
Furthermore, notes CardData, among the nation’s top four Visa (VS) and MasterCard (MC) issuers, who control about half of the total U.S. bank credit card market, fourth quarter (Q4/14) end-of-period (EOP) aggregate outstandings were $360 billion.
The Federal Reserve also reported non-revolving consumer credit outstanding (mostly auto and mobile home loans) reached $2458.6 billion in February, a 6.3% gain YOY.
At the end of February, Americans owed $3343.4 billion in total consumer credit exclusive of home loans.
Revolving Consumer Credit Historical
Q4/13: $857.6 billion
Q1/14: $861.5 billion
Q2/14: $875.1 billion
Q3/14: $881.6 billion
Q4/14: $889.5 billion
Q1/15: $884.8 billion
Source: Federal Reserve
RAM Research projects Revolving Consumer Credit Outstanding will increase in the first quarter by 2.1% YOY.
To review the latest Federal Reserve report on Consumer Credit Outstanding: http://www.federalreserve.gov/releases/g19/current/default.htm
For data, background and forecasts on U.S. Consumer Credit Outstanding: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).
The series for consumer credit outstanding and its components may contain breaks that result from discontinuities in source data. Percent changes are adjusted to exclude the effect of such breaks. In addition, percent changes are at a simple annual rate and are calculated from unrounded data.
Non-revolving consumer credit outstanding includes motor vehicle loans and all other loans not included in revolving credit, such as loans for mobile homes, education, boats, trailers, or vacations. These loans may be secured or unsecured.