Economic data shows decline in credit card debt
According to data released by the Federal Reserve, U.S. consumers appear to have paid off some of their sizable credit card debt in April.
Overall, consumer credit increased at an annual rate of 1.3 percent in April to $2.429 trillion, marking a slowdown from the gain of 7 percent posted in March. The April rise was the smallest since an uptick by 0.1 percent in October 2006.
A decline in credit card debt appeared to influence the deceleration amid overall consumer credit.
Revolving debt, which includes credit cards, dropped 0.5 percent in April to $887.23 billion. That represented the first pullback since March 2006, and indicates that consumers are paying off more credit card debt that they took on.
Some analysts have speculated that consumers are hesitant to take on added debt amid a housing recession.
Published: June 15, 2007
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