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Report: Fewer people borrowed money in July

September 12, 2012

Recently released data suggests that consumers used credit cards less frequently from July to June, with fewer choosing the payment method.

Recently released data suggests that consumers used credit cards less frequently from July to June, with fewer choosing the payment method.

The Federal Reserve data revealed that during the summer period, consumers borrowed $2.705 trillion, a drop of $3.3 billion, according to The New York Times. The source reports that despite the fact that fewer Americans were borrowing money, consumer spending during July had increased from the month before.

Since the recession began in 2008, fewer people have been taking out money. According to the news provider, consumers had $1.03 trillion in debt in 2008, a number which dropped 17 percent to total $850.07 billion in July.

While certain figures have been considered positive, there are many who are concerned that the pace of recovery is too slow. To that end, a number of economic experts have predicted that the Federal Reserve will make moves in order to assist growth.

Some financial experts believe that consumers have changed behavior at credit card terminals due to the slow economy. In an interview with The Associated Press, IHS Insight economist Paul Edelstien said that “[The financial industry] is probably witnessing a shift in consumers’ attitudes towards debt.”

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