Consumers cut back on credit card use once again

Total consumer credit, while no longer decelerating, continues to contract year-over-year.

Total Consumer Credit Outstanding (TCCO) And YOY Change:


A real trouble spot for lending is real estate loans. Not only is they contracting but also shrinking in their contribution to total loan generation. Real estate loan accounting for nearly 42% of the total loans originated through commercial banks in 2007. That number has dipped below 40% as of July 2010.

Breakdown of Total Bank Credit In Commercial Banks:

Consumer borrowing fell again in July as households cut back on their credit card use for a 23rd consecutive month, adding more drag on an economy struggling to mount a sustained rebound.

Borrowing dropped at an annual rate of $3.6 billion in July, the Federal Reserve reported Wednesday. That marked the 17th drop in credit in the past 18 months.

Source: finance.yahoo.com