A $100 Billion Christmas 96
From the December 1996 Issue of CardTrak
American consumers will charge more than $100 billion between Thanksgiving and Christmas for the second year in a row. Despite the shorter shopping season (25 days instead of 31 days) cardholders will rack up $106.5 billion between November 28 and December 25. This figure is about 13% higher than last year but reflects a slow-down in card activity. Last year American consumers charged 20% more than the previous Christmas. For the 1994 Christmas season American charged about 23% more than 1993.

This year's slower growth is the direct result of tighter credit. The card industry's bad debt and slow debt remains at an all-time high. Card issuers have been raising the bar on new applicants hoping to screen out the potential bad credits or the over extenders. Card solicitations are also dropping slowly but surely.

Overall Christmas spending should rise about 4% to 6% based on various industry benchmarks.

   
                         
       YEAR      XMAS CHARGES     GROWTH
       1990:    $ 56.2 billion    +14.9%
       1991:    $ 59.8 billion    + 6.4%
       1992:    $ 66.8 billion    +11.7%
       1993:    $ 79.1 billion    +18.4%
       1994:    $ 96.9 billion    +22.5%
       1995:    $116.3 billion    +20.0%
       1996:    $131.4 billion    +13.0%
    * based on 31 shopping days prior to Christmas
      
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