Consumers cut credit card borrowing for 24th month

WASHINGTON — Consumer borrowing fell again in August as consumers cut back on credit card use for the 24th consecutive month.

The Federal Reserve states that borrowing by consumers declined by $3.3 billion in August. That marked the 18th drop in the past 19 months.

Borrowing increased modestly for one-time loans such as auto loans. That gain was offset by a steep drop in the category that includes credit cards.

Consumers are using less borrowed money amid high unemployment and an uncertain economic recovery. Banks are deciding that some loans will not be repaid, reducing the number even lower.

The reductions are a drag on the nascent economic recovery, which has yet show a sustained rebound.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Submited at Thursday, October 7th, 2010 at 8:03 pm on Finance by john
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