No Turnaround in Sight: Credit Card Debt Falls 12 percent in April

The Federal Reserve reported late Monday that total credit card debt outstanding in the U.S. declined at a 12 percent annualized rate in April, far above the 9 percent annual rate in the first quarter and the total 9.6 percent decline over 2009.

In its monthly Consumer Credit statistical release — also called the G.19 report — the Fed said that revolving debt outstanding, principally comprised of credit card accounts, fell $8.5 billion to $838 billion. It marks the 19th straight month of declines in credit card debt in the U.S. April’s number is the lowest level for revolving debt outstanding since March 2006.

As banks have been ramping up their charge-offs and keeping new lending at bay, credit card debt outstanding has plummeted at a rapid rate (“$123 billion in 19 Months: Credit Card Debt’s Amazing Plummet,” May 11).

Non-revolving debt, like that found in student and car loans, expanded at a 7.1 percent annual rate in April, or a total of $9.5 billion.

Total consumer debt outstanding in the U.S., excluding loans backed by real state, was $2.44 trillion, down from a peak of $2.58 trillion in July 2008.