Credit card spending up, but consumers more likely to pay off monthly balance, ABA says.

• Position: Brief article

CONSUMERS ARE USING CREDIT CARDS

more as a transactional tool to pay for goods and services than as a form of debt, according to the latest edition of the ABA's Credit Card Market Monitor.

The report, reflecting data from last year's third quarter, found that monthly credit card purchase volumes generally increased while average ending balances fell nearly 5 percent.

"This suggests that consumers aren't just using their credit cards more--they are also more likely to pay off or pay down their monthly balance," says Kenneth J. Clayton, executive director of ABA's Card Policy Council. "As a result, the amount consumers are paying in interest as a share of their outstanding credit card balance declined for the 13th consecutive quarter."

This quarter's Monitor found that while card demographics continue to change, people that have credit cards are spending more on discretionary goods and services. Credit card spending at "discretionary" merchants rose 3.5 percent year-over-year, while spending at "nondiscretionary"...