Net Result of Consumer Credit Card Debt Q1 2009 – Q2 2011

	Net Result in Debt Load	Relative to Same Period Last Year	Relative to Same Period 2 Years Ago
Q2 2011	+ $18,408,545,400	+ 66%	+ 368%
Q1 2011	- $32,864,260,800	- 25%	- 30%
2010	+ $9,136,106,350	+ 191%
Q4 2010	+ $34,999,694,500	+ 54%
Q3 2010	+ $6,612,537,750	- 38%
Q2 2010	+ $11,090,851,100	+ 182%
Q1 2010	- $43,566,978,000	- 8%
2009	- $10,018,099,00
Q4 2009	+ $22,655,836,000
Q3 2009	+ $10,643,657,500
Q2 2009	+ $3,929,319,800
Q1 2009	- $47,246,912,300

Net Result in Debt Load – Green indicates that consumers decreased their debt relative to the previous quarter. Red indicates they increased their debt relative to the previous quarter.

Relative to Same Period – Green indicates that consumers either paid down more debt or accumulated less debt than they did in same quarter in 2010 and 2009. Red indicates that they either paid down less debt or accumulated more debt than they did in the same quarter in 2010 and 2009.

Consumer Credit Card Debt and Charge-off Data (in Billions):

	Outstanding Revolving Consumer Debt	Outstanding Credit Card Debt	Quarterly Credit Card Charge-Off Rate	Quarterly Credit Card Charge-Off in Dollars
Q2 2011	$787.4	$771.7	5.58%	$10.8
Q1 2011	$779.6	$764.0	6.96%	$13.3
2010	$826.7	$810.2		$75.1
Q4 2010	$825.7	$810.2	7.70%	$15.6
Q3 2010	$806.9	$790.8	8.55%	$16.9
Q2 2010	$817.4	$801.1	10.97%	$22.0
Q1 2010	$828.5	$811.9	10.16%	$20.6
2009	$894.0	$876.1		$83.2
Q4 2009	$894.0	$876.1	10.12%	$22.2
Q3 2009	$893.5	$875.6	10.1%	$22.1
Q2 2009	$905.2	$887.1	9.77%	$21.6
Q1 2009	$923.3	$904.8	7.62%	$17.2
Q4 2008	$989.1	$969.3

(Source: CardHub.com, Federal Reserve)

Q2 2011

• In Q2 of 2011, outstanding credit card debt increased relative to Q1 2011: $7,644,000,000
• In Q2 2011 the credit card charge-off rate in dollars was: $10,764,545,400
• Net Result in Debt Load: $18,408,545,400 increase
  
• Relative to Q2 2010: 66% more than the increase in the same quarter in 2010
• Relative to Q2 2009: 368%% more than the increase in the same quarter in 2009
  
• CONCLUSION:  As was the case in the previous 2 years, consumers start reversing any debt pay down from the first quarter with a net increase in credit card debt in the second quarter. What is worrisome about 2011 is that the debt in Q2 2011 is a staggering increase of almost $18.5 billion, which is 66% higher than the increase observed on the same quarter one year ago and 368% higher than the increase observed two years ago.

Q1 2011

• In Q1 of 2011, outstanding credit card debt decreased relative to Q4 2010:$45,668,000,000
• In Q1 2011 the credit card charge-off rate in dollars was: $13,302,265,200
• Net Result in Debt Load: $32,365,734,800 decrease
  
• Relative to Q1 2010: 26% less than the decrease in the same quarter in 2010
• Relative to Q1 2009: 31% less than the decrease in the same quarter in 2009
  
• CONCLUSION: As was the case in the previous 2 years, consumers actually paid down their credit card debt in a big way during the first quarter of this year. Consumers paid down around $32 Billion of credit card debt in Q1 of 2011. This pay down, however, is 26% less than what consumers paid down a year ago and 31% less than what they paid down on the same quarter two years ago. Based on this trend and the most recent data from the Federal Reserve, CardHub.com projects that consumers will end 2011 with $20 billion more in credit card debt.

2010

• In 2010, outstanding credit card debt decreased relative to its level in 2009: $65,954,000,000
• In 2010 the credit card charge-off rate in dollars was: $75,090,106,350
• Net Result in Debt Load: $9,136,106,350 increase
  
• CONCLUSION: One might look at the $65.9 billion decline in credit card debt and come to the conclusion that consumer paid down their balances in a big way. The reality is, however, that entire decrease is the direct result of Americans defaulting on their debt. In fact, the true picture is that Americans accumulated $9.1 billion additional credit card debt in 2010 relative to 2009. Like in 2009, the only quarter in 2010 that Americans actually paid down their debt was the first quarter of the year. Finally, unlike 2009, Americans ended 2010 with a net increase instead of a net decrease.

Q4 2010

• In Q4 of 2010, outstanding credit card debt increased relative to Q3 2010: $19,404,000,000
• In Q4 the credit card charge-off rate in dollars was: $15,595,695,500
• Net Result in Debt Load: $34,999,695,500 increase
  
• Relative to last year: 54% more than the increase last year
• CONCLUSION: In Q4 of 2010, outstanding credit card debt went up by $35.0 billion, when the $15.6 billion write-off is considered. This is 54 percent more debt accumulation than was accumulated in this quarter last year.
  

Q3 2010

• In Q3 of 2010, outstanding credit card debt decreased relative to Q2 2010: $10,290,000,000
• In Q3 the credit card charge-off rate in dollars was: $16,902,537,750
• Net Result in Debt Load: $6,612,537,750 increase
• Relative to last year: 38% less than the increase last year
• CONCLUSION: Consumers accumulated $6.6 billion more credit card debt in Q3 than Q2 2010, given that the drop in outstandings is smaller than the dollar amount that was charged-off. This is 38 percent less debt accumulation than was accumulated in this quarter last year.

Q2 2010

• In Q2 of 2010, outstanding credit card debt decreased relative to Q1 2010: $10,878,000,000
• In Q2 the credit card charge-off rate in dollars was: $21,968,851,100
• Net Result in Debt Load: $11,090,851,100 increase
• Relative to last year: 182% more than the increase last year
  
• CONCLUSION: Consumers accumulated almost $10.9 billion more credit card debt in Q2 than Q1 2010, given that the drop in outstandings is smaller than the dollar amount that was charged-off. This is 182 percent more debt accumulation than was accumulated in this quarter last year.

Q1 2010

• In Q1 of 2010, outstanding credit card debt decreased relative to Q4 of 2009: $64,190,000,000
• In Q1 the credit card charge-off rate in dollars was: $20,623,022,000
• Net Result in Debt Load: $43,566,978,000 decrease
  
• Relative to last year: 8% less than the decrease last year
  
• CONCLUSION: Consumers paid down their credit card debt in a big way. Consumers actually paid down around $43.6 billion of credit card debt. This pay down is 8% less than what consumers paid down a year ago.
  

2009

• In 2009, outstanding credit card debt decreased relative to its level in 2008: $93,198,000,000
• In 2009 the credit card charge-off rate in dollars was: $83,179,901,000
• Net Result in Debt Load: $10,018099,000 decrease
  
• CONCLUSION: One might look at the $93 billion decline in credit card debt, and come to the conclusion that Americans paid down their balances in a big way. The reality is that $83.2 billion of the $93 billion decrease is the direct result of Americans defaulting on their debt. The real decrease in credit card debt is only $10 billion, the majority of which is due to a major decline in Q1 of 2009. After Q1 2009, Americans accumulated more and more credit card debt.

Q4 2009

• In Q4 of 2009, outstanding credit card debt increased relative to ts level in Q3 of the same year: $490,000,000
• In Q4 the credit card charge-off rate in dollars was: $22,165,836,000
• Net Result in Debt Load: $22,655,836,000 increase
  
• CONCLUSION: In Q4 of 2009, outstanding credit card debt went up by almost $22.7 billion, when the $22.2 billion write-off is considered.

Q3 2009

• In Q3 of 2009, outstanding credit card debt decreased relative to its level in Q2 of the same year: $11,466,000,000
• In Q3 the credit card charge-off rate in dollars was: $22,109,657,500
• Net Result in Debt Load: $10,643,657,500 increase
  
• CONCLUSION: Consumers accumulated more credit card debt in Q3 than Q2 2009, given that the drop in outstandings is smaller than the dollar amount that was charged-off.

Q2 2009

• In Q2 of 2009, outstanding credit card debt decreased relative to its level in Q1 of the same year: $17,738,000,000
• In Q2 the credit card charge-off rate in dollars was: $21,667,319,800
• Net Result in Debt Load: $3,929,319,800 increase
• CONCLUSION: Consumers accumulated more credit card debt in Q2 than Q1 2009, given that the drop in outstandings is smaller than the dollar amount that was charged-off.

Q1 2009

• In Q1 of 2009, outstanding credit card debt decreased relative to its level in Q4 of 2008: $64,484,000,000
• In Q1 the credit card charge-off rate in dollars was: $17,237,087,700
• Net Result in Debt Load: $47,246,912,300 decrease
  
• CONCLUSION: Consumers paid down their credit card debt in a big way! Consumers actually paid down around $47.2 billion of credit card debt.

For questions or more information regarding this study, please contact our media department.

Please find the study from the previous quarter here: Q1 2011 Credit Card Debt Study. Some of the numbers might differ between the two studies because the Federal Reserve updates its numbers for at least a few months after publishing them.