Reversing Course Again, Consumer Credit Card Balances Fall in June
News from Fox Business:

Consumer credit card balances tumbled in June after shooting up the previous month, according to new data from the Federal Reserve.

The Federal Reserve’s latest monthly G.19 consumer credit report, released Tuesday, showed a 5.1% drop in revolving debt as more people shied away from charging their purchases to credit. Revolving debt, which in the report is made up almost entirely of credit card debt, dropped by $ 3.7 billion in June to $ 864.6 billion.

June’s drop in revolving debt marks the third time this year that consumers have trimmed their credit card balances, and economists say that rising economic uncertainty deserves much of the blame.   

“People are just not sure what the future is going to bring and so consumers are being very careful,” says Michael Davis, a professor of economics at the Cox School of Business at Southern Methodist University. “They’re trying to deleverage and they’re trying to get ahold of their finances, which is probably a good thing.”

The Fed’s G.19 consumer credit report also looks at nonrevolving debt, which includes auto loans, student loans and loans for mobile homes, boats and trailers. Nonrevolving debt went up 7.2% to $ 1.7 trillion in June. Because the nonrevolving debt was larger than revolvin…………… continues on Fox Business

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