Consumer Credit Fell by $12 Billion in August
Consumer credit outstanding among U.S. consumers took a significant dip in August, declining by $11.98 billion, according to Federal Reserve data released in early October. The decline was the seventh consecutive month that U.S. consumers cut their debt and represents an annual reduction in total outstanding consumer credit of 5.8 percent. The drop followed July’s decline of 9.1 percent.
Two types of credit see reductions
Revolving credit, largely made up of credit cards, fell by $9.91 billion, or a 13.1 percent annual rate. Unlike nonrevolving credit, outstanding revolving credit fell by a greater amount in August than it did in July, which saw a 3.1 percent decline.
Total consumer credit also shrinks
October 28, 2009