A late Thanksgiving shoved more holiday spending into December, helping credit union member spending rise more than 4% from a year earlier, according to the nation’s largest payments CUSO.

The Velera Payments Index showed that December spending rose 4.0% by credit card and 4.3% by debit card from a year earlier among members of credit unions that use the St. Petersburg, Fla., CUSO.

Taylor Nelms, senior director of market insights and advisory services for the Filene Research Institute in Madison, Wis., said December activity also reflected the continued growth of online shopping and mobile purchases.

“Consumer spending was remarkably sustained throughout the holiday season in the face of increased budget consciousness, lower overall consumer confidence and real uncertainty about the future,” Nelms said.

Taylor Nelms

“Looking ahead to 2025, we see both optimistic trend lines and some worrying indicators,” Nelms said. “For many credit union leaders, there are concerns about asset quality deterioration on their balance sheets – which may impact consumer spending, especially considering record levels of consumer credit card debt. Additionally, the unsettled regulatory and policy environment is generating additional uncertainty.”

Velera’s report showed surprising stability in credit card delinquencies. They usually peak in December. Instead, the rate ended the year at 2.62%, unchanged from September, which was its highest level since January’s 2.67% rate.

NCUA data gathered through Callahan's Peer Suite showed 60-day-plus delinquencies on credit cards for all credit unions rose from 1.90% in September 2023 to 2.15% in September 2024.

The report also showed continuing slowing in the growth of credit card balances, a trend that has been going on nationally for the past two years at both credit unions and banks.

The average credit card balance finished December at $3,011, up 2.06% (or $61) from a year earlier — the slowest rate of growth for 2024. The average balance rose 1.6% ($47) from November.

Total December credit card balances among credit unions using Velera increased just 1.9% from a year earlier.

Credit card balances for all credit unions and banks in December will be part of the next G-19 Consumer Credit Report, which the Federal Reserve plans to release Feb. 7. In November, credit union balances grew 4.4% to $84.6 billion from a year ago and rose 0.6% from the previous month, compared with an average October-to-November gain of 1.5%.

The 4%-plus gain in spending among members linked to Velera compared favorable to the 3.3% December gain reported by Census for retail spending, excluding automobiles and parts and the 2.9% annual inflation rate reported by the Bureau of Labor Statistics.

Retail spending, excluding automobiles and parts, rose 3.3% in December from a year earlier, Census reported. At Velera, spending rose 4% by credit and rose 4.3% by debit. In other comparisons:

  • Grocery store spending rose 2.7% in December from a year earlier, Census reported. At Velera, spending rose 1% by credit and fell 1% by debit.
  • Gasoline spending fell 4.3% in December from a year earlier, Census reported. At Velera, spending fell 2% by credit and fell 1% by debit.
  • Spending at restaurants and bars rose 4.7% in December from a year earlier, Census reported. At Velera, spending fell 1% by credit and fell 1% by debit.
The Velera Payments Index is based on data from credit unions that have been processing payments with Velera since January 2022. This month’s report encompassed 3.4 billion transactions valued at $171 billion of credit and debit card activity in the 12 months ending Dec. 31.

Contact Jim DuPlessis at [email protected].

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Jim DuPlessis

A journalist for decades.