Article: U.S. borrowing down; Federal Reserve report: Consumer credit falls 3.7% in December

WASHINGTON (AP) - Americans let their credit cards cool off in December and cut back on borrowing by the largest amount in 11 years.

The retrenchment came after a record increase in personal debt in November as zero-interest-rate financing offers spurred a big rise in auto loans.

The Federal Reserve reported Thursday that consumer credit fell by a seasonally adjusted $5.1 billion in December, or at a 3.7 percent annual rate.

The dollar decrease was the biggest since December 1990, when borrowing fell by $5.8 billion. The percentage decrease matched the rate of decline registered in October 1991.

The pullback in December reflected a big drop in demand for revolving credit, such as that used ...

Related newspaper, magazine, and journal articles:

 
 
Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!