Student Loan - Loans and Debt Consolidation

US CREDIT CARD USE FELL FOR SIXTH STRAIGHT MONTH IN JULY DAILYFINANCE

U.S. Credit Card Use Fell for Sixth Straight Month in July

Credit card use by American consumers plunged for the sixth straight month in July, with total consumer debt falling by $3.6 billion, or 1.75%, the U.S. Federal Reserve announced Wednesday.

A Bloomberg survey had expected total consumer debt to fall by $3.5 billion in July, after a revised $1.0 billion decline in June.

In the past 12 months, total consumer debt has fallen 3.1% to $2.418 trillion from $2.497 trillion in July 2009. Thats somewhat less than the 3.3% year-over-year rate of decline recorded in June.

Once again in July, all of the nations consumer debt reduction occurred in revolving debt, which includes most credit credits. Revolving debt fell by $4.4 billion to $827.8 billion. Non-revolving debt, which includes most auto loans, personal loans, and student loans, increased by $700 million to $1.591 trillion.

Belt-Tightening Weighs On U.S. GDP Growth

Julys consumer credit report providedmore of the same regarding credit card revolving and non-revolving debt. Americans are not only paying-down revolving debt, they are weeding-out frivolous consumption.

A modest-consumption U.S. economy -- should thefrugal consumer trend continue -- would represent a structural change for the worlds largest economy. In the last decade, consumer spending accounted for 65% to 70% of U.S. gross domestic product. Back then, that metric depended on rising media...[more]