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Article: U.S. borrowing down; Federal Reserve report: Consumer credit falls 3.7% in December
- Article from:
- Telegraph - Herald (Dubuque)
- Article date:
- February 8, 2002
- Author:
CopyrightCopyright 2002 Telegraph - Herald (Dubuque). Provided by ProQuest LLC. (Hide copyright information)
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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 ...