- Millennials Prefer Plastic to Cash for Small Purchases
- Many Believe That Carrying a Balance Will Improve Their Credit Score
- The Top-Rated Credit Cards in the US
- 17 Remarkably Easy Ways to Raise Holiday Shopping Cash
- The Restless Project: How Much Money Do You Really Need? Let’s start with $100K
- The Scary Way a Friend Request Can Lead to Identity Theft
- Am I Responsible for My Adult Son’s Medical Bills If He’s on My Insurance?
- Wireless Carriers Duke It Out With Unlimited Data Plans
This post comes from partner site LowCards.com
The monthly Consumer Credit report released yesterday by the Federal Reserve shows credit card debt fell for the 19th consecutive month.
Revolving credit, which is primarily credit card usage, declined $8.5 billion in April. This indicates that consumers continue to pay off their credit card debt as issuers keep tight limits on lending.
Revolving credit has fallen an impressive $138 billion since October of 2008, from $976.1 billion to $838.0 billion.
The report also showed that consumer spending slowed in April and savings rose for the first time in four months.
This drop in credit card debt is good for consumers and issuers. Each of the six major credit card issuers reported small declines in the delinquency rates from March to April, indicating that consumers are getting debts to manageable levels and pose less risk of default. Issuers seem to have maintained the stringent credit card approval rates to minimize their risk.
“The economic downturn seems to have had an impact on how consumers are using their credit cards, at least in the short term. It is a good sign to see the revolving credit numbers continue to drop. Hopefully, we are getting back to a mentality where we only buy what we can afford to pay for,” says Bill Hadekopf, CEO of LowCards.com and author of The Credit Card Guidebook.