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U.S. revolving credit, 98% of which is credit card debt, decreased 0.89% in October, to $888.1 billion from a revised total of $895 billion the previous month, according to a Federal Reserve G.19 report on consumer credit released yesterday.
Total seasonally adjusted consumer credit outstanding, which includes revolving and nonrevolving credit, decreased at an annual rate of 1.75% in October, to $2.49 trillion, the report states.
October marked the ninth consecutive decline in revolving credit.
Fitch Group's Fitch Ratings today reported that, although the economy is on a slow path to recovery, the firm expects unemployment and credit card charge-off rates to hit fresh highs next year. Fitch forecasts unemployment to hit 10.5% by mid-2010 and credit card charge-offs on outstanding balances to reach 12% next year.
