Usually Velera does not report any adjustments to its figures, but it said it adjusted February 2024 because it was a leap year, which means the adjustments would improve year-ago comparisons. So comparisons between Census data and Velera will be a bit squishier for February.

At Velera, overall spending rose 0.5% by credit and rose 5.7% by debit.

• Grocery store spending rose an unadjusted 0.5% in February from a year earlier, and rose 4.3% after seasonal adjustments, Census reported. At Velera, spending rose 2% by credit and fell 1% by debit.
• Gasoline spending fell an unadjusted 4.4% and fell an adjusted 0.3% in February from a year earlier, Census reported. At Velera, spending fell -3% by credit and fell -1% by debit.
• Spending at restaurants and bars fell an unadjusted 2.3% and rose an adjusted 1.5% in February from a year earlier, Census reported. At Velera, spending fell 1% by credit and rose 2% by debit.

The delinquency rate rose from a pre-pandemic 1.56% in February 2019 to 2.01% by February 2023.

David Knowles, Velera’s SVP of collections and disputes, said serious delinquency rates are projected to reach 2.76% by the end of 2025, driven by inflation, interest rates and ongoing economic uncertainty.

Buy Now, Pay Later services are also contributing to delinquencies, particularly among the young, Knowles said. “By offering financial education, flexible repayment options and early intervention strategies, credit unions can help members manage debt responsibly and avoid deeper financial distress.”

Velera’s average credit card balance was $2,959 in February, down $48 (-1.65%) from a year earlier and down $1 from January.

Its total credit card balance on Feb. 28 was up 3.1% from a year earlier and down 1.2% from January.

Contact Jim DuPlessis at [email protected].