Monthly payment rates, the amount that cardholders pay on their credit
card debt, headed south to 19.32% in December, and are expected to head
downward this year as consumers migrate from home equity loans to
revolving credit. Payment rates reached nearly 22% during 2006 driven by
increased minimum payments and a strong economy. Consumer revolving
credit hit a record of nearly $873 billion in November, growing at an
annual rate of 11.9%. According to FitchRatings, the gross yield slipped
18 basis points in December to 17.78%, but is 52 basis points above
year-ago levels. Both measurements are for credit card backed-securities.
ABS METRICS
YIELD MPR
Jul 06: 17.63% 20.71%
Aug 06: 17.86% 20.24%
Sep 06: 17.96% 21.06%
Oct 06: 17.58% 19.30%
Nov 06: 17.96% 19.82%
Dec 06: 17.78% 19.32%
Source: FitchRatings
Monthly payment rates, the amount that cardholders pay on their credit
card debt, headed south to 19.32% in December, and are expected to head
downward this year as consumers migrate from home equity loans to
revolving credit. Payment rates reached nearly 22% during 2006 driven by
increased minimum payments and a strong economy. Consumer revolving
credit hit a record of nearly $873 billion in November, growing at an
annual rate of 11.9%. According to FitchRatings, the gross yield slipped
18 basis points in December to 17.78%, but is 52 basis points above
year-ago levels. Both measurements are for credit card backed-securities.
