Americans just reduced their debt load by $21.6 Billion or 10.5% in one month. This monthly drop is a record, going back to 1943.
The Federal Reserve current consumer credit release has last month's consumer credit at $2.4936 trillion and July consumer credit total was $2.4721 trillion.
That's still an astounding figure for consumer debt, $2.5 trillion and about the same total market as 2006. Of course the U.S. population has increased from that time.
Unfortunately the credit card companies didn't get as whacked, with only a 8% drop.
These numbers do not include mortgages, home loans.
My question is how much of this is by choice and how much is limiting consumers access to credit, charge offs and bankruptcy?
August credit card charge offs were at 10.55%...
so are these numbers being spun as choice instead of getting debts discharged by being plain broke, plus banks reducing credit limits and credit lines?