Consumer credit card indebtedness is growing at the same time that the proportion of consumers who don’t use a credit card in a given month is growing, according to the latest Cambridge Consumer Credit Index. Since credit cards are the primary means of payment for online retail goods and services, credit card usage trends are of importance to online retailers.
45% American cardholders are making only minimum or no payments on their outstanding credit card balances, up from 42% who did so in 2004, the Cambridge Consumer Credit Index reports. 37% paid less than half but more than the minimum payments, down from 39% in 2004, and 17% paid more than half the balances due, down from 19% last year. 39% paid their balance in full, the same as last year but down from 43% in 2003. 33% did not use a credit card in the month prior to the survey, up from 29% in 2004 and 26% in 2003.
At the same time, though, more than half of consumers who are revolving a balance are doing so because they are confident they can pay it off: 53% in 2005, up from 51% in 2004 but down from 56% in 2003. Those not paying off the balance because they didn’t have the money represented 47% of revolving balance holders in 2005 vs. 49% a year ago and 44% in 2003.
Back...
