U.S. consumer credit down record amount in July (down $21.55 billion)

[UpInArms]

Source: CBS Marketwatch

WASHINGTON (MarketWatch)- U.S. consumers reduced their credit burden by a record amount in July, the Federal Reserve reported Tuesday. Total seasonally adjusted consumer debt fell $21.55 billion, or at a 10.4% annual rate, in July to $2.47 trillion. This is the sixth straight monthly drop in consumer credit. Consumers have retrenched since the financial crisis hit the economy in full force last September. Credit has fallen in every month since then except January. Economists surveyed by MarketWatch expected consumer credit to decline by $4.3 billion. This is the longest consecutive string of declines in credit since the second half of 1991. In the subcategories, credit-card debt fell $6.11 billion, or 8.5%, to $905.58 billion. This is the record 11th straight monthly drop in credit card debt. Non-revolving credit, such as auto loans, personal loans and student loans fell a record $15.44 billion or 11.7% to $1.57 trillion.

Read more: http://www.marketwatch.com/story/us-consumer-credit-down-record-amount-in-july-2009-09-08?siteid=bnbh

[Barack_America]

1. Pay-offs or write-offs?

[CountAllVotes]

2. no one has anymore money to lose

that is my guess. They have gone beyond tightening their belts. Maybe now they are beginning to rid themselves of debt and the corporate whores that control them is all that can be hoped for.

This is good news I suppose - less debt. ?

:kick:

[FailureToCommunicate]

3. Oh, this is bad news for Bank of America and other debt issuers. Their profits on

card fees and outrageous APR fees will decline slightly. Oh my!

[CountAllVotes]

4. just breaks my heart

:nopity: :nopity: :nopity: :nopity: :nopity:

What will they do without US?

:kick:

[strategery blunder]

7. Yep. Went from carrying $6k balance to a $15 monthly bill pay.

I did that when they jacked my interest rate to 25% in May (and slandered my credit in the notice--there was NOTHING negative on my credit report, because I looked).

The only reason why I put a $15 bill pay on the card is to keep the account active while I work on improving the income side of my economic situation, so I can replace the line of credit with one from a credit union that is less likely to arbitrarily rip me off. I'd like to never have to walk into their branch again--ooooh how I look forward to that day. :grr:

[dflprincess]

9. Bank of America has nothing to fear

the health insurance bills most talked about all allow for hefty copays and deductibles. Not only will people be forced to buy a crummy product from the insurance companies, they'll wind up using plastic to cover all the out of pocket expenses.

Congress is seeing to all those they represent will be well taken care of.

[Lagomorph]

5. We need a bailout !!!

[Doctor_J]

6. Does this include foreclosures?

I guess onc the bank takes your house, you're off the hook for the mortgage!

[alcibiades_mystery]

8. Good

[Overseas]

10. We're not shopping because we might not get single payer.

We can't spend money freely because we're looking for work and fear we won't get the bailout we desperately need-- Medicare for all who choose it.

The trigger of health security blew off its hinges years ago already. We are desperate. Millions more are uninsured and millions more are bankrupt, thanks to our legislators giving the private insurers too many chances already to prove that the private sector could do better. They have failed miserably.

Give us national health security for our tax dollars-- deprivatize the military to save billions to fund national health insurance-- and then I'd be able to go out and shop a bit more. We are wasting billions on private contractors to the military to allow our country to continue unpopular wars without drafting anyone. The rampant war profiteering by private military contractors has probably slowed down from what it was in the Bush Gang's years, but I'll bet billions are still being wasted there.

Open Up Medicare! Single Payer Now !