Credit card debt is something that many consumers are focused on when it comes to debt management, and recent numbers from the central bank show people may be making an effort to pay off what they owe.
According to the Federal Reserve, preliminary numbers for October show that revolving consumer credit dropped at an annual rate of 9.3 percent. Revised numbers for the third quarter of this year also show that revolving credit decreased at an annual rate of 7.3 percent. Much of revolving consumer credit is tied up in credit card debt.
Overall, preliminary numbers indicate consumers have made a push to avoid debt. At an annual rate, consumer credit fell 1.75 percent during October, and revised numbers for the third quarter showed that it fell 3.3 percent.
Numbers released for October show that the total amount of consumer credit came to almost $2.5 trillion, while revolving credit amounted to $888.1 billion.
Available credit may be an issue for many consumers as lenders try to be more careful regarding whom they give loans to. For example, many lenders are implementing higher standards for a consumer’s credit score when it comes to qualifying for a loan.