Americans cut credit-card use 21st straight time in June

[keepinitreal]

August 6, 2010

Americans cut credit-card use a 21st straight time in June as sluggish job growth and a slowing economy turned spenders into savers, putting more pressure on the recovery.

Consumer credit outstanding decreased at a seasonally adjusted annual rate of 0.7%, down $1.3 billion to $2.42 trillion in June, a Federal Reserve report said Friday.

The report showed revolving credit dropped $4.5 billion, or 6.5%, to $826.48 billion. The last time credit-card use rose was September 2008. Nonrevolving credit rose 2.4%; that category includes loans for cars, tuition and vacations, among other things.

The report on borrowing came on the same day the government reported July nonfarm payrolls declined by 131,000 jobshourly wages of U.S. employees rose four cents and the workweek grew a little longer.

The consumer-credit report doesn't include numbers on home mortgages and other real-estate-secured loans.

http://online.wsj.com/article/SB10001424052748703309704575413591483539952.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

[Flamingo]

This coicides with two of our credit cards giving us recent increases "rewarding" us for being responsible cardholders...right...they just want us to get out and charge.

[keepinitreal]

I wonder if one reason consumer credit outstanding keeps decreasing is because the banks have to write off uncollectable debt from consumer bankruptcy filings each month.

[spidge]

I wonder if one reason consumer credit outstanding keeps decreasing is because the banks have to write off uncollectable debt from consumer bankruptcy filings each month.

You are likely correct.