Consumer Credit Falls Seventh Straight Month

Washington, DC, Oct. 8, 2009--Consumer credit fell in August for a seventh consecutive month as banks maintained restrictive terms and job losses made households reluctant to borrow.

Consumer credit fell by $12 billion, or 5.8 percent at an annual rate, to $2.46 trillion, according to a Federal Reserve report.

Credit dropped by $19 billion in July, less than previously estimated. The series of declines is the longest since 1991.

Economists had forecast consumer credit would drop $10 billion in August.

Revolving debt, such as credit cards, decreased by $9.91 billion in August, the Fed report showed.

Non-revolving debt, including loans for automobiles and mobile homes, fell by $2.07 billion. The Fed’s report doesn’t cover borrowing secured by real estate.