Consumer credit dives $9.5 billion in August
The unpredictable economy had people shunning credit cards and paying off cars and student loans, according to a report Friday from the Federal Reserve. Consumer credit swung down $9.5 billion in August, the first decline since September 2010 and the worst since April 2010.
The month before, credit levels saw an $11.9-billion increase.
Revolving credit, associated mostly with credit cards, tumbled for the second month in a row, down $2.2 billion. Non-revolving credit, linked to borrowing for school and auto purchases, slipped $7.3 billion.
-- Tiffany Hsu
Photo: MasterCard credit cards. Credit: Jonathan Bainbridge / Reuters.