But is it the consumers or the banks?
Credit card debt, which has had a continuous rise since the Federal Reserve started tracking it in 1968 until September of 2008, is continuing now in a steady decline.
At this time the average amount of revolving credit is 15% lower than at its peak and it has posted a monthly decline in each of the last 20 months.
May 2010 saw a decrease of $7.32 billion leveling out at a $830.83 billion.
There seems to be a few contributing factors. The exceptionally weak job market has more people defaulting but also the weak economy has prompted people to take steps to reduce their debt and avoid additional debt.
Also, the credit card companies are offering less lucrative rates and even canceling credit cards that are not being used, all while trying to implement more fees in order to bolster their declining earnings from the recession, the implementation of CARD and the general malaise among consumers.
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