Released: October 08, 2009

Consumers keep paying off credit cards

Source: Nancy Trejos, Washington Post (Free Registration)

Consumers continued to retrench in August, with borrowers reducing their credit card debt for the 11th consecutive month, according to figures released by the Federal Reserve on Wednesday.

Revolving credit debt, mostly through credit cards with balances that are not paid off immediately, dropped by an annual rate of 13.1 percent in August to $899.4 billion, the Federal Reserve reported.
Non-revolving credit debt, such as auto loans and student loans, dropped slightly by an annual rate of 1.6 percent to about $1.56 trillion.

Consumer advocates and industry experts attribute the drop in credit card debt to uncertainly over jobs and rising interest rates.

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