Consumer credit drops for first time in 11 months

WASHINGTON (MarketWatch) -- U.S. consumers shed debt for the first time in 11 months in August, the Federal Reserve reported Friday. Consumers lowered their debt by a seasonally adjusted $9.5 billion, or at a 4.6% annual rate, in August. This is the biggest decline since April 2010. The decline was unexpected. Wall Street economists had forecast an increase of about $8 billion in consumer credit in August. Both categories of credit declined in the month. The non-revolving category such as auto loans, personal loans, and student loans fell $7.2 billion or 5.2% in August. Revolving credit, which tracks credit-card debt, fell $2.3 billion or 3.5% in the month.