In the first half of the year, many Americans used their maturing CDs to pay down their total credit card debt, according to a report from Market Rates Insight.
MRI, which tracks rates for deposits, loans and fees for financial institutions, said CD balances dropped by about $200 billion from January to June, and 15 percent of that – $29 billion – went toward people's credit card debt.
"One of the significant findings of this analysis is the positive relationship between CD and credit card balances," said MRI's Dan Geller. "The research indicates a strong and significant linear relationship between these two variables, which means that as CD balances drop, so do credit card balances, and vice versa."
Many consumers have been more conscientious about reducing their total credit card debt in recent months. However, some experts have begun to question whether the nationwide drops in credit card debt are due to more people paying off their balances, or increased charge offs.