Consumers cut back on their use of credit cards again in September.
The latest report on Consumer Credit released today by the Federal Reserve shows that revolving credit, made up mostly of credit card debt, fell $2.9 billion to $852.0 billion during the month of September. This represents a 4.1 percent decline on an annualized rate.
This was the third decrease in revolving credit in the past four months.
For the third quarter of 2012, revolving credit decreased at an annual rate of 1.6 percent.
Non-revolving credit, such as auto loans and student loans, increased by an annual rate of 6.6 percent during the third quarter, including a very strong 9.9 percent increase in the month of September.
