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.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
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