BIRMINGHGAM, Ala.—During a year in which consumers are increasing their revolving debt, credit card debt fell slightly in August for the first time since February. According to the monthly Consumer Credit report from the Federal Reserve, credit card debt dropped $208 million, or an annual rate of 0.3%. Americans now have $880.3 billion in revolving debt, the majority of which is credit card debt. Revolving debt has increased 3.2% over year-ago levels.
“This s just a small decrease and nothing can be read into it,” said Bill Hardekopf, CEO of LowCards.com. “Credit card debt is rising consistently in 2014, but it is nowhere near the levels prior to the economic downturn. Consumers are still cautious to put too much on their cards and issuers are still not approving as many people as they used to.”
The Fed report also shows auto loans and student loans continued to increase. Non-revolving debt rose $13.7 billion, an annual increase of 7% in August to $2.366 trillion, the smallest increase since January. Non-revolving debt is now 8.2% above last year's levels. Overall, consumer borrowing rose $13.5 billion in August, fueled by these gains in auto loans and student loans. Consumer debt is now at an all-time high of $3.247 trillion.