Average Credit Card Debt Per Borrower Reaches a 10-year low

August 2, 2011, Written By Lynn Oldshue

A new TransUnion study shows that consumers made an estimated $72 billion more in payments on their credit cards than purchases between the first quarters of 2009 and 2010. Five years earlier, consumers made an estimated $2.1 billion more in purchases than payments. That is a big change in payment dynamics and TransUnion says this shows cardholders are paying down their balances and contradicts the belief that balances have declined primarily because of charge-offs.

In the first quarter of 2010, the average credit card debt per borrower was $4,679, a 10-year low. The average debt was $5,776 in the first quarter of 2009 and $5,165 in the first quarter of 2010.

TransUnion also shows that consumers prefer to pay with a debit card. In an IBOPE Zogby International survey that was commissioned by TransUnion in early June reports that approximately 55% of consumers said they chose to use their debit card over their credit card more than half the time when making daily purchases. 47% of respondents said they did so more than three out of four times. Another 8% of respondents said they chose to use their debit card over credit card 51-75% of the time.

Link to study

http://newsroom.transunion.com/easyir/customrel.do?easyirid=DC2167C025A9EA04&version=live&prid=781752&releasejsp=custom_144


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The information contained within this article was accurate as of August 2, 2011. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.