Household Credit Debt Falls In November
While many Americans are still struggling with foreclosure and credit card debt, new reports indicate some consumers are taking steps to alleviate their financial problems.
Since 2008, consumers have reduced their outstanding home mortgages and credit card debt per household, Northern Trust reports.
Credit card debt has fallen nearly $157 billion from a peak two years ago, down to $2.41 trillion in the third quarter of this year, according to Northern Trust. In addition, consumers have decreased the amount they owe on mortgages from $10.6 trillion to $10.1 trillion this year.
This decline in total household debt as a percentage of the Gross Domestic Product was the largest such drop in the post-war period, the news source says. The report also found the debt reduction was greater than in previous recessionary periods in the 1980s and 1990s.
The report says consumers' reduction of borrowing is one of the biggest factors contributing to the improvements, Northern Trust says.
Overall, consumers have reduced their borrowing totals for 25 consecutive months in part by using cash, checks and debit in place of credit cards.