Consumers cut credit card borrowing
New statistics show consumers are increasingly keeping their credit cards in their pockets, taking on less debt, and saving more.
August marked the seventh consecutive month that Americans have reduced their borrowing, according to the Dow Jones Newswire.
A number of other statistics also highlighted a shift to more conservative financial management. Outstanding consumer credit decreased 1.7 percent to $2.4 trillion, revolving credit dropped by $5 billion and the number of credit card payments over 60 days late hit a near two-year low, according to the report.
While most numbers continued their downward trend, there were some notable increasings, including a rise in nonrevolving credit- typically used for houses, cars and other large purchases.
The report attributes the rise and fall of these categories to the current high unemployment rate and the drop in home values. In addition, findings by CardHub.com, blamed the figures on a slow recognition of debt by banks.
Banks abandoned more than $42.5 billion in credit card debt thus far in 2010, more than twice its 2007 figure, according to CardHub.com.