Credit card debt usage drops - Bills.com News

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Credit card debt usage drops

Friday, Aug 21, 2009

Though a number of areas have seen an increase, as a whole the nation has seen a drop in credit card debt.

According to Equifax, credit card debt in the country fell by about 3.3 percent during the second quarter. There are some areas in the country, however, where credit card balances have seen an increase.

Citing the report from Equifax, USA Today has reported that one of those area is Visalia, California,where credit card debt has seen a 4.6 percent increase during the quarter. The metro area of Reno, Nevada, has also seen a rise in credit card balances, as debt has grown by 2.4 percent.

Provo, Utah, also saw a 6.8 percent increase in credit card debt. According to Lars Lefgren, a BYU associate economics professor, the increase in credit card debt in that area could be accounted for by the fact that many young families trying to establish credit live there.

Credit card debt seeing a drop off is supported by recent numbers from the Federal
Reserve, which indicate that the amount of revolving debt has dropped by 6.8 percent during the month of July. Overall, the Fed reported revolving consumer credit was at $917 billion.

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