Credit Card Debt Falls Again
Consumers remain cautious about carrying credit card debt, but are borrowing more for auto and student loans.
The latest Federal Reserve Consumer Credit Report showed that Americans continued to carry less debt on their credit cards in July. Revolving credit, made up mostly of credit card loans, dropped $1.8 billion, an annualized rate of 2.6 percent. June numbers had also declined by $3.8 billion, an annualized rate of 5.2 percent.
Analysts feel the wage and job growth continues to be stagnant, providing limited optimism for consumer spending.
However, there were significant increases in non-revolving credit. This is mostly due to increases in auto loans and student loans. Non-revolving credit jumped $12.2 billion in July to just over $2 trillion. This was an annualized increase of 7.4 percent.
Overall consumer debt grew at a 4.4 percent annual rate from June to July.