This just in from the Associated Press consumers have busted their debt snowballs and according to July’s numbers have paid down $21.6 Billion dollars in debt! All of this while the government is trying to induce you to take on more debt by buying a new car with the cash for clunkers program. We’ll see how that changes in the coming months but for me this is happy news to know that there legions of hard working people getting rid of debt. Analysts predicted that the the drop would be about 4 billion. Don’t count the American consumer out, moreover I’d prefer to be known as an American producer do we really need to be labelled consumers?
Working your own way out of debt or changing your consumer ways? Give a shout out. If you are interested in starting your own journey you may want to check out The Debt Snowball Saved My Marriage: a Spreadsheet Tell-all. It documents my own families start to debt freedom and hopefully can help you as well.
More from the Associated Press:
Demand for non-revolving credit used to finance cars, vacations, education and other things fell by $15.4 billion, also a record decline. That 11.7 percent pace was on top of an 8 percent annualized decline in June.
Consumers’ appetite for revolving credit, primarily credit cards, declined by $6.1 billion in July, an annualized rate of 8 percent that followed a 6.4 percent drop in June.
Economists predict that consumers will be spending less, saving more and trimming debt to get their household finances — which have been decimated by the recession — into better shape.
July’s retreat translated into an annualized decline of 10.4 percent. That followed a cut of $15.5 billion in June, or a 7.4 percent annualized drop, and the most since a 16.3 percent decline in June 1975.
The latest cut left total consumer credit at $2.47 trillion.