US consumer credit falls $3.6 bln
US consumer credit fell for a sixth straight month in July. Revolving debt (like credit cards) fell $4.4 bln while non-revolving debt like student and car loans rose $0.75 bln.
Consumers remain cautious, the data would suggest, a short-term drag on the economy but a long-term plus as personal balance sheets are repaired.

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$827.8bn revolving credit has fallen below the 2005 figure ($829.6bn).
Frugal Americans…
More here:- “Cardholders Prefer Debit as Credit-Card Use Falls” http://www.bloomberg.com/news/2010-09-08/cardholders-prefer-debit-as-credit-card-use-falls-javelin-says.html
It might be good for personal balance sheets but bad it surely is for demand.
Here’s a very interesting piece on debt and how it affects GDP. It becomes more onerous with deleveraging ( sp).
http://www.debtdeflation.com/blogs/wp-content/uploads/2010/08/WhatBernankeDoesntUnderstandAboutDeflation.pdf
Great find Jeff. Gripping stuff!
@Fluffy, I like to look at it as more realistic demand. People will now only buy what they have cash for. Which will also lead to increased savings as well.
This is encouraging long term news.
[...] consumer credit falls $3.6 bln in July; sixth straight monthly [...]
Here’s a demographics interview with Dent which will play into the deleveraging cycle and demand.
http://seekingalpha.com/article/223886-harry-dent-s-outlook-on-demographics-debt-and-deflation?source=article_sb_picks