SAVINGS, INVESTMENT & DEBT OWNERSHIP

CONSUMER AND BUSINESS DEBT

Compared with the late 1990s, the rate of growth of business borrowing for the period 2000 to 2004 slowed. But consumers continued to pile on debt.
CREDIT MARKET DEBT OUTSTANDING, OWED BY SECTOR, 1995-2004 (1)

($ billions)




1995$4,874.1$2,909.6
19965,206.23,092.3
19975,517.63,382.3
19985,954.83,778.3
19996,448.44,185.7
20007,018.04,536.2
20017,638.74,758.1
20028,368.94,785.7
20039,231.54,953.6
200410,264.25,193.7

(1) Excludes corporate equities and mutual fund shares.

Source: Board of Governors of the Federal Reserve System.

  • Household debt rose 11.2 percent from 2003 to 2004, compared with 4.8 percent for business debt. Over the 10 years, 1995-2004, business debt rose 78.5 percent, compared with 110.6 percent for household debt.

DEBT GROWTH BY SECTOR, 1995-2004

(Percent change from prior year)



Source: Board of Governors of the Federal Reserve System.

DEBT HELD BY FAMILIES BY TYPE OF DEBT AND LENDING INSTITUTION, 1995-2001





     Total100.0%100.0%100.0%
Home-secured debt73.171.375.1
Installment loans11.913.012.3
Other residential property7.77.76.4
Credit card balances3.93.93.4
Other debt2.83.72.3
Other lines of credit0.60.30.5
    
Purpose of debt
     Total100.0%100.0%100.0%
Home purchase70.367.770.7
Other residential property8.27.96.6
Vehicles7.67.67.8
Goods and services5.76.15.7
Education2.73.43.1
Investment, excluding real estate1.03.32.8
Home improvement2.02.11.9
Unclassifiable loans against pension accounts0.20.40.3
Other2.21.51.1
    
Type of lending institution
     Total100.0%100.0%100.0%
Mortgage or real estate lender32.835.538.0
Commercial bank34.932.834.1
Thift institution (1)10.89.76.1
Credit union4.54.25.5
Finance or loan company3.24.24.3
Credit and store cards3.93.93.7
Brokerage1.93.83.1
Individual lender5.03.32.0
Other nonfinancial0.81.31.4
Government1.20.61.1
Pension account0.20.40.3
Other loans0.70.30.5

(1) Savings and loan association or savings bank.

Note: Latest data available. Based on surveys conducted every three years.

Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.

DEBT HELD HELD BY FAMILIES, BY TYPE OF DEBT, 1998 AND 2001









199843.1%5.1%43.7%44.1%2.3%8.8%74.1%
200144.64.745.244.41.57.275.1
        
By age of family head 2001       
Under 35 years old35.72.763.849.61.78.882.7
35 to 44 years old59.64.957.154.11.78.088.6
45 to 54 years old59.86.545.950.41.57.484.6
55 to 64 years old49.08.039.341.63.17.475.4
65 to 74 years old32.03.421.130.0(2)5.056.8
75 years old and over9.52.09.518.4(2)3.629.2
        
Percentiles of income 2001 (3)       
Less than 2013.8(2)25.530.31.35.949.3
20 to 39.927.01.843.244.51.55.670.2
40 to 59.944.43.251.952.81.57.782.1
60 to 79.961.85.456.752.61.57.785.6
80 to 89.976.910.355.750.32.69.391.4
90 to 10075.414.941.233.11.48.885.3

(1) Families include one-person units.
(2) Ten or fewer observations.
(3) Ranges listed below represent percentiles rather than income levels. A percentile is a statistical ranking point. The 50th percentile represents the midpoint of all values. For example, at the 50th percentile half of the families in the ranking fall above this income level and half fall below
.

Note: Latest data available. Based on surveys conducted every three years.

Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.

CONSUMER CREDIT FINANCE RATES, 1995-2004












Commercial banks          
     New automobiles (48 months)9.57%9.05%9.02%8.73%8.44%9.34%8.50%7.62%6.93%6.60%
     Personal (24 months)13.9413.5413.9013.7613.3913.9013.2212.5411.9511.89
     Credit card plans15.9015.6315.7715.7115.2115.7814.8713.1112.7313.21
Finance companies          
     New automobiles11.199.847.126.306.666.615.654.293.404.36
     Used automobiles14.4813.5313.2712.6412.6013.5512.1810.749.72NA

NA= Data not available.

Source: Board of Governors of the Federal Reserve System.

PERCENT OF U.S. HOUSEHOLDS THAT USE SELECTED PAYMENT INSTRUMENTS,
1995 AND 2001



 

Any of these instruments

ATM (1)

Debit card

Direct deposit

Automatic bill paying

 Smart card (1)













All households76.5%88.4%61.2%69.8%17.6%47.0%46.8%67.3%21.8%40.3%1.2%2.9%
Age of head of household            
     Under 30 years old75.283.071.178.124.560.631.148.817.932.11.82.6
     30 to 60 years old77.489.367.276.819.753.442.964.824.544.11.53.3
     61 years old and over75.289.243.148.99.624.663.283.218.235.90.32.1

(1) Questions on ATMs and smart cards asked whether any members of the household had an ATM card or a smart card, not whether the member used it. Other questions asked about usage.

Source: Mester, Loretta J., “Changes in the Use of Electronic Means of Payment: 1995-2001,” Business Review, Third Quarter 2003, published by Federal Reserve Bank of Philadelphia.

HOUSEHOLD DEBT AS A PERCENT OF DISPOSABLE INCOME, 1995-2004 (1)



(1) As measured by the household debt service ratio, an estimate of the ratio of debt payments to disposable personal income. Debt payments consist of the estimated required payments on outstanding mortgage and consumer debt. All values are for the fourth quarter for each year.

Source: Board of Governors of the Federal Reserve System.


USE OF GENERAL PURPOSE CREDIT CARDS BY FAMILIES, 1992-2001 (1)



 

 

 

 

 

 

Percent of cardholders (3) who









199262.4%2$100 52.6%$1,200 53.0%19.6%27.4%
199566.5220056.01,70052.420.127.5
199867.5220054.72,00053.819.326.9
200172.7220053.71,80055.319.125.6
By family income        
     Less than $10,00028.51067.41,00045.323.031.7
     $10,000 to $24,99956.1210057.01,00049.519.930.6
     $25,000 to $49,99976.1210061.31,70046.719.733.6
     $50,000 to $99,99987.9220053.92,00055.220.824.0
     $100,000 and more95.821,00036.13,00075.213.910.9

(1) Dollar figures are expressed in 2001 dollars.
(2) Among families having a balance.
(3) Cardholding families.

Note: Based on the Survey of Consumer Finance. Latest data available.

Source: Board of Governors of the Federal Reserve System.

UNDERGRADUATE STUDENT CREDIT CARD USAGE, 1998-2004






Percent who have credit cards67%78%83%76%
Average number of credit cards3.503.004.254.09
Percent who have four or more credit cards27%32%47%43%

Source: Nellie Mae.

CREDIT CARD LOSS RATES, 1995-2004 (1)

(Percent, end of year)





19953.96%20004.68%
19964.6520016.42
19975.3420025.47
19985.1020035.78
19994.3820044.94

(1) Total loans and leases removed from balance sheet because of uncollectibility, less amounts recovered on loans and leases previously charged off, at FDIC-insured commercial institutions.

Source: Federal Deposit Insurance Corporation.

TOP TEN CREDIT CARD ISSUERS BY OUTSTANDINGS, 2004 (1)

($ millions, end of year)





1Citigroup Inc.$139,600.0$118,000.0
2Chase Card Services135,370.0128,692.0
3MBNA America101,900.0104,200.0
4Bank of America58,629.036,596.0
5Capital One Financial Corp.48,609.646,278.8
6Discover Financial Services Inc.48,261.048,358.0
7American Express Centurion Bank39,600.038,500.0
8HSBC Credit Card Services19,670.019,552.0
9Providian Financial Corp.18,100.016,614.1
10Wells Fargo13,479.911,762.1

(1) Based on responses to CID survey. Includes all credit card debt outstanding.

Source: SourceMedia's Card Industry Directory.