Combined credit debt fell again in February

Thursday, April 8, 2010
Consumers may be making more progress on personal financial issues.
- By Bruce Sands
Consumers have continued making progress in paying down their credit debts and auto loans, despite a shaky economy and questions about the strength of the recovery.

In the latest announcement from the Federal Reserve, the nation's combined consumer credit debt stood at $858.1 billion as of the end of February, down from $867.6 billion in January. The latest rate of decline, 13.1 percent on an annualized basis, was consistent with numbers seen in the fourth quarter of 2009.

In the fourth quarter of 2008, revolving consumer credit debt peaked at $958.1 billion, indicating that people have been paying down debts they ran up in the prelude to the financial collapse.

Some economists have also warned that the current decline in consumer credit is due considerably to the fact that many lenders have simply charged off old debts and are extending loans to fewer people. This is particularly likely now that federal credit card reforms have made it less profitable for lenders to offer new accounts to people with lower credit scores.

While consumers have showed progress in this area of the economy, it remains to be seen if the combination of weak spending and high unemployment will continue to make dealer gold an attractive investment option.


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