Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
We’ve all heard that the recent economic difficulties have prompted more Americans to start paying down their debt, increase their overall savings rate, etc. As a part of this trend, credit card usage has reportedly declined.
Well… If you actually look at the numbers, you’ll see that reports of the demise of credit cards have been greatly exaggerated. Want proof? Check out this infographic from Index Credit Cards (below) that summarizes U.S. credit card usage.
In short… Yes, consumer debt has declined over the past few years for the first time in recent history – from a high of $974B in 2009 to just over $800B last fall – but credit card usage is still pervasive.
A few thoughts… For starters, I was a bit surprised by the large number of credit cards per cardholder. While I know that some people carry a wallet full of rewards credit cards, an overall average of 7.7 was higher than I would’ve expected.
Beyond that, I was impressed that American Express has a market share roughly equal to that of MasterCard. Given that AmEx isn’t as widely accepted, I expected this number to be lower.
At the same time, I would’ve expected Discover to have a bigger piece of the action. While they’re not explicitly listed, the big three account for 86% of all transactions, which means that Discover is embedded somewhere within the remaining 14% – presumably along with all of the store-branded credit cards, etc.
As for the individual usage statistics, these were much lower than I expected. An overall average of 119 credit card transactions per cardholder per year? That’s roughly once every three days. I don’t know about you, but I use a credit card way more often than that, and I charge significantly more than $10,500 per year.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (534)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (325)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (228)
- Will Mac OS X Lion Kill Quicken 2007? (191)