Credit Card Debt Down Again in July

The Federal Reserve said Wednesday that total U.S. credit card debt outstanding contracted in July for the 23rd consecutive month.

In its monthly Consumer Credit statistical release – also called the G.19 report – the Fed reported a 6.3 percent annualized decline in revolving credit balances, principally comprised of credit card accounts. Total revolving debt outstanding was $827.8 billion in July, down from a peak of $973.6 billion in August 2008.

The Fed also revised quarterly revolving debt stats for the first and second quarters of 2010. In the second quarter of 2010, credit card debt fell at an annual rate of 7.2 percent after falling at an 8.5 percent rate in the first quarter. Credit card debt declined 9.6 percent in all of 2009.

Total consumer debt outstanding fell at a 1.6 percent annual rate in July, according to the Fed. Non-revolving debt – like that found in student, auto and personal loans – increased at a modest 0.6 percent annual rate.

Americans had $2.418 trillion in outstanding debt in July, down from a peak of $2.582 trillion in July 2008. The Fed’s G.19 report is compiled using data from all U.S. member lending institutions and does not include debt backed by real estate.