Reckless spending concept, money flying out of box.
Credit union members, like other Americans, increased their post-holiday spending at a relatively brisk pace, and member delinquencies subsided, according to a report Tuesday from the nation’s largest payments CUSO.
The Velera Payments Index showed members whose credit cards are handled by Velera spent 2.5% more by credit and 7.8% more by debit in January 2025 than in January 2024.
Those unadjusted growth rates bracketed the Census Bureau’s report from Feb. 14 that showed unadjusted retail sales in January, excluding motor vehicles and parts, were 4.4% greater than a year earlier. Member spending also bracketed January’s 3.0% annual inflation rate. Core inflation, now at 3.3%, was up 0.4% for January, the largest increase in two years.
By segment, the reports showed:
- Grocery store spending rose 5.2% in January from a year earlier, Census reported. At Velera, spending rose 3% by credit and rose 2% by debit.
- Spending at restaurants and bars rose 6.9% in January from a year earlier, Census reported. At Velera, spending rose 4% by credit and rose 5% by debit.
- Gasoline spending rose 2.4% in January from a year earlier, Census reported. At Velera, spending rose 2% by credit and rose 3% by debit.
The combined balance on cards handled by Velera at Jan. 31 was 3.7% higher than a year earlier, an improvement from the 12-month growth rate of 1.9% through December. The Fed’s G-19 Consumer Credit Report showed the 12-month growth rates through December were 4.4% for all credit unions and 5.1% among banks.
Among members with credit cards handled by Velera, the average balance was $2,960 in January, up 1.4% or $44 from a year earlier — “the lowest rate of growth for the past four years,” the report said.
However, January’s 2.55% credit card delinquency rate dropped from 2.67% a year earlier and 2.62% in December. Delinquencies were still higher than the 1.98% pre-pandemic rate of January 2019.
NCUA data gathered through Callahan’s Peer Suite showed 60-day-plus delinquencies on credit cards for all credit unions rose from 2.10% in December 2023 to 2.15% in September 2024 and 2.16% in December 2024.
In January, the 2.5% cost-of-living adjustment for Social Security was received by recipients, benefiting nearly 68 million Americans. On average, Social Security retirement benefits will increase by about $50 per month.
Velera, based in St. Petersburg, Fla., bases its Payments Index on data from credit unions that have been processing payments with it since January 2023.
This month’s report encompassed 3.5 billion transactions valued at $173 billion of credit and debit card activity in the 12 months ending Jan. 31.
Contact Jim DuPlessis at [email protected].
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
