National amount of nonrevolving credit rose slightly in July

09/09/2010
By Credit.com Staff

The amount of nonrevolving credit - which includes personal loans, auto loans and similar financial products that cannot be added to over the life of the agreement - consumers carried in July rose 0.6 percent, according to the latest Federal Reserve statistics. In total, this type of credit rose to $1.591 trillion from $1.59 trillion in June.

This change came even as consumers made a more conscious effort to reduce their revolving credit, which is usually associated with credit card debt, and successfully cut it by 6.3 percent. This may indicate that consumers were more eager to take on larger loans as they cut credit card spending.

A Dow Jones report on the statistics said the overall decline in consumer credit wasn't as bad as experts predicted, but momentum in either direction has been unpredictable and slow. Consumers have been spending less overall due to the continuing weak job market but are doing a better job of paying off their monthly debts.

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