Consumer credit continued its decline as Americans cut another $7 billion off October, bringing the year-to-date total reduction to $69 billion. Posting its 14th consecutive monthly decline, U.S. consumer revolving credit remained well below $900 billion in October. Since peaking at a revised $975.2 billion in the third quarter of last year, Americans have chopped-off more than $97 billion in revolving credit to-date. According to new and revised data released by the Federal Reserve, revolving credit declined at an annual rate of 9.3% in October, following a revised 10.5% decline in September and a 10.6% drop in August. In September revolving credit declined to a revised $895.0 billion and to a revised $903.0 billion in August. March posted the largest contraction over the past nine months, dropping more than $14 billion. Bank credit card debt (excluding store and gas credit cards) at the end of the third quarter was about $710 billion or roughly 85% of total revolving credit, according to CardData (www.carddata.com). Store and gas credit cards had about $105 billion in outstandings at year-end 2008. At the end of October, Americans were $2483 billion in debt, excluding home mortgages.
REVOLVING CREDIT HISTORICAL ($billions) Oct 09 Sep 09 Aug 09 Jul 09 Jun 09 May 09 GRWTH: -9.3% -10.5 -10.6 -3.6 -6.4 -12.1 $OWED: $888.1 895.0 903.0 909.0 911.7 916.6 Source: Federal Reserve; revised figures as of 12/7/09; For complete historical data, visit CardData (www.carddata.com)