BIRMINGHAM, Ala. – For the second time in the last three months revolving credit is down.

The latest report on consumer credit from the Federal Reserve shows revolving credit, made up mostly of credit card debt, fell $3.7 billion to $864.6 billion in June, a 5.1% decline on an annualized rate. Revolving credit dipped on an annualized basis by 6.8% in April and increased 10.5% in May, ending with a dip of .5% for the second quarter overall.

Bill Hardekopf, CEO of, told Credit Union Journal the results indicate consumers have become wiser users of credit cards, more learning to purchase only what they can afford to pay off each month. He also believes it may signal the start of a trend with credit card usage.

“It’s a sign the economy is still struggling and that consumers don’t feel great about the economy and their own situations,” Hardekopf said. “Families are still hurting.”

While revolving credit dropped, non-revolving credit, such as auto loans and student loans, increased by $10.2 billion in June, an annualized increase of 7.2%. For the quarter, non-revolving credit increased at an annual rate of 7.8%.


Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.