Debt Reduction and Falling Credit

Americans Continue Debt Reduction As Consumer Credit Falls Again

Mitchell Jaworski – AHN Reporter

Washington, D.C, United States (AHN) – The Federal Reserve announced Friday that U.S. consumer credit dropped at a record pace in November as Americans continue to cut borrowing in the face of a relatively weak job market.

According to the Fed’s report, total consumer credit shrunk $17.5 billion in November, far surpassing analyst estimates for a $5 billion decline, according to a Bloomberg News survey.

The latest decline marks 10 consecutive months of falling credit, the longest streak since the data started being tracked in 1943.

Much of the November decline was found in revolving debt, which includes items such as credit cards. That type group shed $13.7 billion in the period as consumer paid down credit cards and the like. Non-revolving debt, such as auto loans, fell $3.8 billion according to the Fed report.

Read more: Americans Continue Debt Reduction As Consumer Credit Falls Again | AHN.