Credit Card Use Decreases in June
Consumers cut back on their use of credit cards in June.
The latest report on Consumer Credit released yesterday by the Federal Reserve shows that revolving credit, made up mostly of credit card debt, fell $3.7 billion to $864.6 billion in June. This represents a 5.1 percent decline on an annualized rate.
This was the second decrease in the past three months. The May report showed that revolving credit had increased $7.5 billion.
For the second quarter of 2012, revolving credit decreased at an annual rate of 0.5 percent, the first decrease in three quarters.
Non-revolving credit, such as auto loans and student loans, increased by $10.2 billion in June, which represented an annualized increase of 7.2 percent. For the quarter, non-revolving credit increased at an annual rate of 7.8 percent.