U.S. consumer credit falls for 7th straight month

Discussion in 'Economics' started by ASusilovic, Oct 7, 2009.

  1. WASHINGTON (MarketWatch) -U.S. consumers reduced their debt for the seventh straight month in August, the Federal Reserve reported Wednesday. Total seasonally adjusted consumer debt fell $11.98 billion, or at a 5.8% annual rate, in August to $2.46 trillion. Consumers have retrenched since the financial crisis hit in full force last September. Credit has fallen in every month except January. Economists surveyed by MarketWatch expected consumer credit to decline by $12.5 billion. In the subcategories, credit-card debt fell $9.91 billion, or 13.1%, to $899.41 billion. This is the record 11th straight monthly drop in credit card debt. Non-revolving credit, such as auto loans, personal loans and student loans fell $2.10 billion or 1.6% to $1.56 trillion.

  2. Daal


    The consumerless recovery :cool:
  3. MattF


    Consumers didn't reduce their debt. Creditors did :D
  4. No, consumers are paying down their debt.
  5. It means that certris paribus the household saving rate is rising. That's quite to be expected too.

  6. can you say chargoff?
  7. Could be a prescient comment. Did the total debt balance decline because consumers paid down what they owe, or did creditors write off uncollectibles. . ??