US Consumer revolving debt, based largely on credit card balances, dropped $2.4bn on a seasonally adjusted basis in November to $1.086 trillion.
Credit card balances are down 2.75% on an annualised basis, according to the Federal Reserve. The news comes amid reports of consumer optimism, as reflected in the New York Fed’s survey of consumer expectations in November.
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Consumers also displayed lower expectations for spending, with median spending expectations falling to 2.8%, from 3.3% for the October survey. This measure was at its lowest since September 2017.
However, consumers remained positive about their ability to make payments on their debts. Only 11.3% on average expected they could miss a minimum debt payment, down from 11.6%.
In addition, fewer consumers (34.6%) expected that unemployment will be a year from now, down from 36.8%.
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By GlobalDataMeanwhile, the average credit card interest rate stood this week at 17.30%.
