get out of debt in April.” align=”right”>Trying to get out of debt has been a concern for many people, especially after the worst recession since World War II.
A recent report from the Federal Reserve Board shows that this trend of paying down debt continued in April when it comes to credit cards. Revolving consumer credit – which accounts for money owed on plastic – dropped at an annual rate of 12 percent, falling from $846.5 billion to $838 billion.
However, the report from the nation’s central bank also showed that overall consumer credit increased at a yearly rate of 0.5 percent. This was driven primarily by a rise in nonrevolving debt, which includes loans for education and vehicles. This type of credit increased at an annual rate of 7.1 percent.
Recently, colleges and universities across the country saw graduates walk to get their degrees. However, as they enter in the real world, many of them also carry student loans and credit card debt. According to a recent report from Sallie Mae, the average amount of credit card debt for a graduating senior was $4,100 in 2008.