Credit Card Debt Falls for First Time Since February
Credit card debt fell slightly in August for the first time since February, dropping $208 million or an annual rate of 0.3%. These were the findings of the latest monthly Consumer Credit report from the Federal Reserve.
Americans now have $880.3 billion in revolving debt, the majority of which is credit card debt. Revolving debt has increased 3.2% over year-ago levels.
On the other hand, auto loans and student loans continued to increase. Nonrevolving debt rose $13.7 billion, an annual increase of 7% in August to $2.366 trillion. This was, however, the smallest increase since January. Nonrevolving debt is now 8.2% above last year’s levels.
Overall, consumer borrowing rose $13.5 billion in August, fueled by these gains in auto loans and student loans. This follows a revised gain of $21.6 billion in July.
Consumer debt is now at an all-time high of $3.247 trillion.