Paying off credit card debt may seem to be a new priority for Americans as indicated by numbers released by the federal government.
According to the Federal Reserve, revolving debt fell by 6.8 percent in June, down to $917 billion. June’s numbers cap a three-month trend of drops in revolving debt. In April, revolving debt fell by 11.7 percent, and in May it fell 6.3 percent.
Much of revolving debt is attributed to credit card debt. That’s in contrast to non-revolving debt, which involves things like student loans and loans for cars. Non-revolving debt fell by 3.8 percent during June, down to about $1.5 trillion.
When taken together, revolving and non-revolving debt fell by 4.9 percent in June, and overall debt was at about $2.5 trillion.
Though Americans may be paying off more of their debt, numbers from the U.S. Department of Commerce’s Bureau of Economic Analysis show they are saving money less than in the past. The savings rate fell to 4.6 percent during June.