Consumer Credit of Southern Oregon gets weekly updates from the NFCC on media stories from around the nation. The NFCC always adds some statistics about credit and our industry to the weekly update. We thought you would find them interesting.

 

Statistically Speaking.... New orders for manufactured durable goods in April increased $3.0 billion or 1.9 percent to $161.5 billion, the U.S. Census   Bureau announced today. This was the second increase in the last three months and followed a 2.1 percent March decrease. Excluding transportation, new orders increased 0.8 percent. Excluding defense, new orders also increased 1.0 percent. (Released  May 28, 2009)

Statistically Speaking...... According to data from the U.S. Census Bureau, there were 159 million credit cardholders in the United States in 2000, 173 million in 2006, and that number is projected to grow to 181 million Americans by 2010. (Source: Census Bureau) In 2006, the United States Census Bureau determined that there were nearly 1.5 billion credit cards in use in the U.S. A stack of all those credit cards would reach more than 70 miles into space -- and be almost as tall as 13 Mount Everests. (Source: NY Times, Feb. 23, 2009) In the fourth quarter of 2008, consumers over 60 had an average balance of $763 per open bankcard or retail accounts. A year before, that balance was $746. The year before that, it was $735 -- meaning the average has jumped about 4 percent in 2 years. (Source: Experian marketing insight snapshot, March 2009)

Statistically Speaking....... Today, credit cards are responsible for more than $2.5 trillion in transactions a year and are accepted at more than 24 million locations in more than 200 countries and territories. (Source: American Bankers Association, March 2009) It is estimated that there are 10,000 payment card transactions made every second around the world. (Source: American Bankers Association, March 2009) Between 1989 and 2006, the nation's total credit card charges increased from about $69 billion a year to more than $1.8 trillion. (Source: Demos.org, April 2008)

Statistically Speaking.... And the Answer Is... 37.9 million. This is the number (based on 2007 Population Estimates) of people 65 and older in the United States on July 1, 2007, accounting for 13 percent of the total population. Between 2006 and 2007, this age group increased by 635,000 people. Source: U.S. Census Bureau

Stastically Speaking...... As of Septembr 30, 2008, there were 339 million Visa credit cards and 314 million Visa debit cards in circulation in the United States. (Source: Visa.com) As of December 31, 2008, there were 263 million MasterCard credit cards and 126 million MasterCard debit cards in circulation in the United States. (Source: MasterCard.com) As of December 31, 2008, there were 54 million American Express credit cards in circulation in the United States. (Source: Nilson Report, February 2009) As of December 31, 2008, there were 57.1 million Discover credit cards in circulation in the United States. (Source: Nilson Report, February 2009)

Odd Industry Statistics....... Corpus Christi, Texas, residents have America's worst credit scores. (Source: Men's Health magazine's personal debt survey, July 2008) Sioux Falls, S.D., boasts America's best credit scores. (Source: Men's Health magazine's personal debt survey, July 2008) At about 17 percent each, Alaska and Hawaii have the largest concentration of consumers who use 50 percent or more of their available credit. (Source: Experian National Score Index Study, February 2007) Residents of Jackson, Miss., use the highest percentage of their credit limit. (Source: Men's Health magazine's personal debt survey, July 2008) Lincoln, Neb., residents use the lowest percentage of their credit limit. (Source: Men's Health magazine's personal debt survey, July 2008

Statistically Speaking...... Seventy three percent of survey respondents said they have logged into their credit card account via the Internet. (Source: ComScore, September 2008) More than eight out of 10 respondents said that checking their statement on line is important to them, which is consistent with results from the 2007 survey. (Source: ComScore, September 2008)

Statistically Speaking.... According to data from the U.S. Census Bureau, there were 159 million credit cardholders in the United States in 2000, 173 million in 2006, and that number is projected to grow to 181 million Americans by 2010. (Source: Census Bureau) There are more than 292 million credit cards in use in the United States (Source: General Accounting Office, April 2006) "Total bankcard debt per bankcard borrower" is $5,710. This was alternately described as the total balance of bank-issued credit cards per consumer. (Source: TransUnion, December 2008) 55 percent of credit card users keep a balance on their credit card, up 2 percent from 2007. (Source: ComScore, September 2008)

Statistically Speaking… The first widely accepted plastic charge card was issued in 1958 by American Express. The first general-use credit card that allowed balances to be paid over time was the BankAmericard (which in 1977 changed its name to Visa), issued in 1959. (Sources: PBS Frontline; American Express, Visa USA) How did MasterCard begin? In 1966, a number of banks formed the Interbank Card Association. In 1969, the Interbank Card Association bought the rights to use "Master Charge" from the California Bank Association. It was renamed MasterCard in 1979. (Source: MasterCard.com)

Statistically Speaking… The U.S. Office of the Comptroller of the Currency indicated this month [December] that more than half of the loans modified in 2008 had defaulted again within six months. Even so, workouts are still growing in number. Fitch ratings agency expects workouts on loans created at the height of the subprime bubble to grow to 15.0% in 2009 from virtually none before. [Source: Forbes]

Statistically Speaking… Average bank credit card debt increased nearly 1.6 percent in the third quarter compared with the second quarter. It rose 6 percent from the same period a year ago nationwide. The average borrower had $5,710 in bank card debt in the quarter, up from $5,387 in the third quarter of 2007. The highest average bank credit card debt was found in Alaska at $7,827. The state with the lowest average was Iowa, with $4,277. (Sources: TransUnion, Forbes)

Statistically Speaking… Mortgage loan delinquency rates rose for the seventh quarter in a row to hit 3.96. That's a 12% increase from the second quarter's 3.53% average. Florida had the highest borrower delinquency rate in the third quarter, which came in at 7.82%, while Nevada was just behind it with a rate of 7.71%. North Dakota had the lowest rate at 1.35%, followed by South Dakota at 1.6%, and Montana at 1.71%. The states that saw the biggest increases in delinquency rates were the District of Colombia, up 42.7%, followed by North Dakota, up 22.7%, and Idaho, which saw a 21.7% increase. West Virginia was the only state to record a drop in delinquency rates for the third quarter. The average national mortgage debt per borrower was up 0.2% to $192,287 from the second quarter's total of $191,681.    (Sources: CNNMoney.com, TransUnion)

Statistically Speaking… About 7 percent of mortgage loans were delinquent, defined as at least 30 days late on a payment.  Another 3 percent were somewhere in the foreclosure process. Taken together, about one in 10 home mortgages is now in some form of distress. About two-thirds of American homeowners have mortgages. The percentage of borrowers entering the foreclosure process during the quarter stayed stable at 1.07 percent, compared with 1.08 percent during the second quarter and .78 percent during the same period a year ago. But those somewhere in the process continues to rise, reaching 2.97 percent during the third quarter compared with 2.75 percent previous quarter. It was up from 1.69 percent during the third quarter of 2007. At the current rate, by the end of the year foreclosure actions will have begun against 2.2 million homeowners across the country.  (Sources: Washington Post, Mortgage Bankers Association)

Statistically Speaking… From a survey on the financial habits and condition of Americans between 25 and 34 years old: The median non-mortgage debt for this group rose to $9,000 in 2005, from $5,000 in 1985. The savings rate fell into negative territory, negative 2.2 percent of disposable income, from positive 1.5 percent of disposable income, in those 20 years. Net worth, not including homes, fell to $4,100 in 2005 from $6,000 in 1985. (Source: BusinessWeek)

Statistically Speaking… The Federal Reserve reported that consumer borrowing increased by $6.9 billion in September to $2.588 trillion from a revised $2.581 trillion in August. The annual rate of consumer borrowing rose by 3.2% last month. Credit card borrowing, or revolving debt, increased at an annual rate of 1.2%. Non-revolving borrowing, including student and auto loans, expanded by 4.4%. In August, consumer debt decreased by $6.3 billion. The fall in consumer credit in August was the first time it had declined since January 1998, and was largely due to a decrease in non-revolving lines of credit in the form of auto loans. (Sources: The Federal Reserve, CNNMoney.com)

Statistically Speaking… Nearly 60 percent of banks report having tightened lending standards on credit card debt. 85 percent of the domestic banks responding report that they had tightened their lending standards for a major type of business loans known as "commercial and industrial" loans, up from 60 percent in the June survey. Nearly all banks—95 percent— reported tighter standards for the lines of credit they extend to large and medium-sized businesses. A large number of banks also reported they were tightening standards for both credit cards and other types of consumer loans. Besides the nearly 60 percent of banks tightening standards on credit card debt, 65 percent said they had tightened lending standards for other types of consumer loans over the past three months. About 20 percent of the domestic banks reported cutting limits for existing credit card accounts held by prime, or strong credit, customers. Around 60 percent of domestic banks had reduced those limits for "nonprime" borrowers. The Fed survey found 70 percent of the banks responding said they had tightened lending standards further for prime mortgages. That was on top of 75 percent who were tightening such standards in the previous survey. The latest results for that area covered 52 institutions that account for about 78 percent of residential real estate loans as of June. (Sources: Associated Press, Federal Reserve Quarterly Survey of Bank Lending Practices)

Statistically Speaking… Consumer bankruptcy filings rose 28.6% nationwide last month from a year before, according to the American Bankruptcy Institute. In August, bankruptcy filings were up 29.2% from a year earlier. American consumers owe nearly $2.6 trillion in non-mortgage debt, or about $8,460 for every man, woman and child, according to the Federal Reserve. Credit card debt alone is fast approaching $1 trillion. (Sources: American Bankruptcy Institute, Los Angeles Times)

Statistically Speaking… 10% of Americans are taking out more cash advances on their credit cards than in the past. One in five individuals surveyed indicate they are "sometimes" (14%) or "always" (6%) unable to pay their credit card and/or loan(s) balances each month. An additional 8% can only make minimum payment required and another 8% either always or sometimes pay less than the minimum. 22% have between $5,000 and $20,000 in credit card debt, while 3% have more than $40,000 in credit card debt. When looking at their debt as a percentage of their available credit, 25% are at or near the maximum limit of their primary card with an additional 20% are at or near the limit of their secondary card. Over the past year, 13% of respondents have found it a lot more difficult to keep up with credit card payments, while 25% have found it somewhat more difficult. That compares to just 10% who said it was less difficult. When asked to prioritize their monthly bills, 35% of respondents said their mortgage was the bill they would pay first while 26% of those surveyed said it was their credit cards. (Sources: Market Watch, Standard & Poor’s)

Statistically Speaking… U.S. consumer bankruptcy filings jumped 29.2% to 96,413 in August That was the highest monthly level since October 2005, when the new federal bankruptcy law made it more difficult and costly for consumers to file for Chapter 7 protection. Total bankruptcy filings are expected to exceed 1.1 million this year[2008], compared with 850,912 last year. Typically, consumer filings have represented about 96% or more of total bankruptcies over the past decade. Chapter 7 filings rose to 67.6% of total personal bankruptcies in the second quarter of 2008 from 56.1% as of the first quarter of 2006.  Sources: American Bankruptcy Institute, Wall Street Journal

Statistically Speaking… Nearly three in 10 American workers say they have more credit card debt than retirement savings.  Just 17 percent of those earning more than $75,000 reported having more credit card debt than retirement savings. For those earning less than $35,000, that number is a shocking 51 percent. More than one person in three -- 37 percent -- say they don't have enough money to make ends meet, with that percentage rising to 69 percent of those earning less than $35,000 a year.  Only a bare majority -- 51 percent -- say they are confident they will have saved enough to retire when the time comes. Thirteen percent of the workforce say they have been laid off from a job in the past three years; twice this number (28%) say that others in their firm or workplace have been laid off over this same period. Fifteen percent say they anticipate layoffs in their company in the next 12 months.  One worker in three acknowledges concern over personal job security, with 13 percent saying they're very concerned and 22 percent somewhat concerned.  Only half are working the number of hours they want to work; one-third are working either more or fewer hours than they were just three months ago. Souces: CreditCards.com, "The Anxious American Worker," Rutgers University's John J. Heldrich Center for Workforce Development