The amount of debt currently outstanding across the country declined significantly in September, largely as a result of consumers paying off more of their installment loans.
The total amount of consumer credit nationwide dipped $9.5 billion in September, one of the most significant month-over-month declines in more than a year, according to the latest monthly statistics released by the Federal Reserve Board. The vast majority of that total – $7.3 billion, was the result of consumers paying off their outstanding nonrevolving credit – installment loans such as those for education and auto purchases, but not including mortgages.
Meanwhile, consumers also trimmed their revolving credit – the type most commonly associated with credit card debt – once again during the month, the report said. Overall, the amount owed on these accounts dipped to $790.1 billion from August’s total of $792.3 billion.
Consumers have been more conscientious about paying down their outstanding credit card debt in recent months, and all of the nation’s largest lenders have seen significant declines in instances of both delinquency and default as a result.