U.S. Consumer Credit Declines at Record Pace in November

Total consumer credit in the United States fell at an annual rate of 8.5 percent in November, a record rate for any single month. Credit card debt contraction led the way.

The Federal Reserve said late Friday in its monthly consumer credit statistical release (G.19) that revolving debt, most commonly credit card accounts, dropped at an 18.5 percent annual rate, the most ever by far. Credit card debt fell by $13.7 billion in the month to $874 billion.

November marked the 14th consecutive month for credit card debt contraction. Since September 2008, more than $101 billion in credit card debt has been wiped off the books of credit issuing banks.

Non-revolving debt, like that found in auto, student and personal loans, declined by $3.8 billion, or at an annual rate of 2.9 percent.

The Fed’s G.19 report does not include debt backed by real estate.

Total consumer credit outstanding in the U.S. now stands at $2.464 trillion, down from a high of $2.581 trillion in July 2008.