Consumer credit card debt continues to drop
03/09/2010 - By Rachel Stolzberg
U.S. consumers are continuing to pay off credit card debt.
Tag:
Credit Card Processing
Retailers that accept credit cards may be experiencing a drop in sales as consumers continue to be mindful of their finances and pay down their credit card debt.
According to TransUnion, average credit card debt for U.S. consumers dropped for the fifth consecutive quarter. During the second quarter of this year - ending June 30 - average credit card debt dropped by 4.1 percent to $4,951 from $5,165 in the previous quarter.
Alaska, Tennessee and Hawaii were the nation's top debtors, with the average consumer owing $7,148, $5,564 and $5,594, respectively. Iowa had the lowest at $3,792, followed by North Dakota at $4,097 and West Virgina with $4,104.
"A different demographic in the Midwest states and regional economic dynamics tend to drive more conservative card spending, which is reflective in those states' credit card-debt levels," Ezra Becker, director of consulting and strategy in TransUnion's business unit, said.
Luckily for businesses and
payment processing companies, credit card spending is beginning to bounce back. So far, spending has increased by six percent compared to a year ago, market research firm Synovate reports.
Articles written by ChargeNational.com's editorial team. For more information, click here.
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