U.S. consumer credit plunges as Americans retrench

NEW YORK, July 8 (BestGrowthStock) – U.S. consumer credit plunged
in May and was revised down sharply for the prior month,
suggesting Americans are still leery of taking on new debt
despite rock-bottom interest rates.

The Federal Reserve said on Thursday total outstanding
credit to U.S. consumers, everything from car loans to credit
cards, fell $9.15 billion, much sharper than forecasts for a $2
billion decrease. April’s reading was revised to a hefty $14.86
billion drop from the originally reported rise of $1 billion.

Consumer credit peaked around $2.58 trillion in July 2008,
just before a worsening of the credit crisis brought down
financial giants like Lehman Brothers and American
International Group Inc. Since then, it has dropped by more
than $160 billion.

Revolving credit, mainly credit card accounts, was down
$7.32 billion, while non-revolving loans for things like cars,
boats and a college education fell $1.82 billion.
(Reporting by Pedro Nicolaci da Costa; Editing by Neil
Stempleman)

U.S. consumer credit plunges as Americans retrench