Credit Card Debt Declines in September for Third Straight Month

Total credit card debt in the U.S. declined by $600 million in September, the third-straight month of declines, the Federal Reserve reported Monday.

Although revolving debt declined at a slow pace (1 percent, annualized), it marked a change of trend in the general direction of credit card accounts. Credit card debt had expanded in three of the four months in the early part of 2011 after three years of steady declines.

After peaking at $972.2 billion in September 2008, credit card debt outstanding has fallen to the $789.6 billion reported Monday for September 2011.

Non-revolving debt – like that found in auto and student loans – expanded at a 5.8 percent annual rate in September, according to the Fed. The $8 billion increase brought total consumer credit outstanding to $2.452 trillion. The Fed’s monthly consumer credit report does not include debt backed by real estate.