A large swath of credit union members have been slowing their spending this year, according to a report Thursday from the nation’s largest payments CUSO.
Velera’s Payments Index showed that spending in June rose 0.9% by credit card and 3.6% by debit card from a year earlier. Velera’s pool of credit cards showed its first decline of its total balance in at least five years.
Denise Stevens, EVP and chief product officer for Velera, said credit union members are struggling with tighter budgets.
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“As economic headwinds and tariff-related price pressures ripple through the economy, we’re starting to see a shift in how households manage day-to-day spending – notably in the continued decline of debit activity since its peak in January,” Stevens said.
By comparison, the Census Bureau reported Thursday that retail spending, excluding automobiles and parts, rose 3.3% in June from a year earlier, outpacing inflation, which was 2.7% in June.
“Consumer spending remained slow in June, with debit card activity declining from its peak in January as the downward trend continues,” the report said. “Tariff-sensitive goods, including furniture, toys and clothing, posted higher prices in June, with consumer goods again having the highest contribution to growth in June 2025 for debit purchases.”
The average credit card balance in Velera’s pool was $2,949 on June 30, up $14 from a year earlier (+0.5%) and down just $3 from a month earlier. “For all of 2025, the average has finished monthly in a narrow band of $2,940 to $2,960,” the report said.
Velera’s total credit card balance fell for the first time in the five years of Payments Index reporting, falling 0.6% from June 2024. “The erosion of year-over-year growth in total credit card balances was evident over the past 30 months. The peak growth month was in September 2022, at 14.3%,” the report said.
For all credit unions, the Fed’s latest G-19 Consumer Credit Report showed credit card balances have been rising at slower rates since February 2023, but were still positive in May. Credit unions held $85.1 billion in credit card debt May 31, up 3.9% from a year earlier.
Credit card balances in Velera’s pool had a 60-day-plus delinquency rate of 2.39 as of June 30, down from 2.44% a year earlier and up from 1.44% in June 2019.
NCUA data via Callahan's Peer Suite showed the credit card delinquency rate among all credit unions was 2.01% in March, matching the level a year earlier. In June 2024 the rate was 1.98%.
Velera 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 $176 billion of credit and debit card activity in the 12 months ending June 30.
Contact Jim DuPlessis at [email protected].
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Jim DuPlessis
Jim covers economic data trends emerging for credit unions, as well as branch news and dividends.
