Consumer credit climbed 1.7 percent in October because of increased efforts to acquire lines of nonrevolving credit, those for fixed amounts such as mortgages and car loans, despite another steep decline in the amount of nationwide credit card debt, according to the latest monthly statistics from the Federal Reserve Board. The amount of this type of loan increased 6.8 percent, climbing to just under $1.6 trillion – up from nearly $1.59 trillion in September.
Meanwhile, consumers cut revolving credit – most commonly associated with credit card debt – for the 26th month in a row, the report said. The total amount of outstanding balances fell to $800.5 billion from $806.1 billion in September, a decline of 8.4 percent.
Many consumers have become more wary of taking on credit card debt in the last two years as a result of financial fears stemming from the national recession.