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Monthly payment rates, the amount that cardholders pay on their credit card debt, topped the 21% level again in September, driven by higher minimum payments in the sub-prime sector. However, as dependence on revolving credit grows with declines in home equity extraction and charge-offs/delinquencies begin to normalize, monthly payment rates are expected to possibly decline in the fourth quarter. Payment rates, among asset-backed credit card bonds, were 21.06% in September, up 82 basis points from the prior month. Year-to-date, the monthly payment rate has averaged 20.67%, running 185 basis points from one-year ago. According to FitchRatings, the yield increased 10 basis points to 17.96% and is up seven basis points over year-ago levels.
