In March, Americans slashed their credit card debt by 6.8%. This is the second largest drop since the Federal Reserve began keeping such records. An increase in unemployment means that many people are buying less on credit for fear of losing their income. People are also saving more, as the savings rate has increased to 4.2%. Credit is less easy to obtain as banks continue to tighten standards for issuing credit.   (Source: CreditCards.com)

Average Debt per Household

The Federal Reserve's G-19 Consumer Credit report also stated that non-revolving debt, like loans for auto, furniture and consumer electronics, dropped 4.2%. An average American household has over $8,037 in credit card debt, and over $13,638 in non-revolving debt. Note: This estimate is based on 306 million people in the U.S., an average of 2.6 persons per household, and 117.7 million households. (Source: Federal Reserve, G.19 Release, April 7, 2009; U.S. Census, Population Clock; Average Household Size)

What It Means to You

Now is a good time to reduce your own financial vulnerability.  Here are some helpful ways to reduce your own credit card debt....and avoid becoming a statistic in the Federal Reserve’s G-19 report next month.

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