For the first time since the beginning of 2007, average credit card
debt and national credit card loan delinquency (the ratio of borrowers 90
or more days past due) experienced statistically relevant quarterly
declines.

National average credit card debt per credit card borrower dropped 1.25
percent from the previous quarter’s $1,694 total to $1,673, though the
total remains 5.6 percent higher than the same period last year ($1,584).
The highest state average card debt per credit card borrower was in Alaska
at $2,378, followed by Tennessee at $2,013 and Alabama at $2,005. The
lowest average credit card debt per credit card borrower was found in Iowa
($1,252), North Dakota ($1,265) and South Dakota ($1,365).

The steepest increases in average credit card debt over the previous
quarter occurred in Alaska (1.54 percent), Hawaii (1.45 percent) and
Alabama (0.44 percent). The District of Columbia experienced the largest
drop in its average credit card debt (-4.38 percent), followed by North
Dakota (-4.0 percent) and West Virginia (-3.67 percent).

Nationally, the ratio of credit card borrowers delinquent on one or
more of their credit cards declined to 1.19 percent in the first quarter of
2008, down 12.5 percent over the previous period. However, the total still
remains higher than the same period last year (0.91 percent). Delinquency
was highest in Nevada (1.74 percent), followed closely by Mississippi (1.53
percent) and Florida (1.51 percent). The lowest credit card loan
delinquency rates were found in North Dakota (0.67 percent), Utah (0.75
percent) and South Dakota (0.79 percent).

Analysis

“As a whole, the recent deceleration, however slight, in the mortgage
delinquency rate is reflected in the bank card market as consumers take
stock of their overall debt and begin to catch up on their repayment
schedule wherever possible,” said Ezra Becker, principal consultant in
TransUnion’s financial services group. “Even states like California,
Florida, and Nevada who have experienced large increases over the last four
quarters in their bank card delinquency rates showed a drop in the first
quarter.”

The analysis found that the drop was not just regional but across the
board for each state. The District of Columbia experienced the smallest
drop in delinquency (-6.4 percent) while North Dakota’s delinquency rate
dropped the most (-27.2 percent) from the previous period.

Forecast

“Although the national 90-day delinquency rate is expected to drop
slightly next quarter as consumers continue to take stock of their overall
debt, forecasts for the remainder of the year see delinquency to gradually
edge back up to 1.20 percent and above, as increases in gas prices add to
the overall financial burden of the consumer,” said Becker.

As for state projections, Nevada (1.7 percent) is still anticipated to
experience the highest average delinquency rate by the end of 2008, while
North Dakota is expected to show the lowest level of delinquency (0.6
percent).

(Related Graphs: http://transunion.mediaroom.com/index.php?s=98)
(MP3 File Sound bites: http://transunion.mediaroom.com/index.php?s=102)