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Consumers reduced their borrowing for the seventh consecutive month in August, as households worked to pay off debt and banks reduced credit card limits.
The Federal Reserve said consumer debt outstanding fell by $12 billion, a 5.8 percent annual rate. That follows a downwardly revised drop of $19 billion, or 9.1 percent, in July. Total consumer credit outstanding is now $2.46 trillion, down about 4.6 percent from its peak. The Fed’s report covers credit cards, store cards, auto and personal loans. It doesn’t include mortgages or real-estate debt.
