Debt Declines for the First Time Ever

A recent Federal Reserve report shows that American's debt shrank for the first time since it began tracking data about debt in 1951. Credit card debt went down, but very slightly. The biggest drop was in non-revolving debt which includes mortgages and auto loans. Unfortunately, one of the primary reasons debt dropped is because of the millions of dollars in home foreclosures. Mortgage debt simply shifted from consumers to banks.

As credit card issuers continue to increase interest rates and cut credit limits, credit card usage is expected to continue to drop.

Debt Management Resources:

• Two Credit Card Payback Methods
• Budget Your Way Out of Debt
• 5 Ways to Lower Your Debt Payments