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Fed report shows lower credit card borrowing in July

August 9, 2012

According to a report from the Federal Reserve, consumers in the United States borrowed less from credit card firms in June than the month before.

According to a report from the Federal Reserve, consumers in the United States borrowed less from credit card firms in June than the month before.

The recent report from the quasi-governmental agency revealed that credit card debt dropped by $3.7 billion, totaling $865 billion. Borrowing overall increased by $6.5 billion during the period and totaled $2.58 trillion. The Associated Press reports that since the recession began in 2008, fewer people have been using credit to pay for expenses.

The figures also showed that since the downturn, more have been taking out student loans, hoping that an education would help with job prospects down the line.

“We are probably witnessing a shift in consumers’ attitudes towards debt,” said Paul Edelstein, an economist at IHS Global Insight, in an interview with the source. “Households may be willing to take on debt to pay for cars and education… . But other forms of consumption will come increasingly from current incomes.”

The downward trend is a reversal from May, when the Fed reported that borrowing on credit cards had increased $17.1 billion from April and was at its highest level since November 2007.

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