According to the Federal reserve reports, the total outstanding debt of the consumers which includes automobile loans, recreational vehicle loans, personal loans and most importantly the credit card debt, has fallen by 3.34 billion dollars for the 7th consecutive month.
According to another recent report on the credit card customers, the average consumer credit card debt in America has declined by 1100 dollars to reach 3793 dollars over the past year. Reports suggest that amongst the credit card holders and customers, 23% carry over their credit card outstanding balances month over month. The average credit card balance for such customers is around 10,000 dollars on the card accounts. This represents a significant drop from the numbers reported last year. Around the same time last year, the percentage of credit card customers who had a debt of more than 10,000 dollars carried over from one month to the next exceeded 30%. This definitely shows a drop in the overall credit card debt amongst the customers.
As per the Federal Reserve report, the nation's credit card debt has fallen for the 24th consecutive month and in August the difference is 4.99 billion dollars. Other debts including vehicle, student and auto loans have climbed up meanwhile by 1.65 billion dollars. After increasing by 888.59 million dollars in July, this is the 4th consecutive month during which the non credit card debt has increased. The fact that the non revolving debt which excludes outstanding non-credit card debt has increased suggests that the consumers feel more confident with the auto industry and the overall economy. There are still serious issues as far as the home market is concerned, along with the climbing unemployment rates.
The consumer report also suggested that 23% or nearly a quarter of the credit card customers have increased motivation to pay down their credit card debt and the customers are in fact, paying more than the minimum payment that is required on the credit cards every month. As per new laws the credit card issuers are also obliged to show the credit card holders, how long it will take to pay off the outstanding debt on the credit card if they continue to pay the minimum payment due on the card every month. The new laws also make it mandatory for lenders to apply the payment on the balances that bear the highest interest rates. A whopping 47% of the credit card customers actually concerns over the ability of lenders to slash credit limits, impose an annual fee or to cancel the credit card accounts altogether.