U.S. revolving credit, 98% of which is credit card debt, fell to $874 billion in November from a revised total of $887.7 billion in October, the largest dollar-value drop since records began in 1968, according to a Federal Reserve G.19 report on consumer credit released Friday.
The decline also marks a record 14th consecutive month in which Americans shed credit card debt. Since September 2008, Americans have eliminated nearly $101.2 billion in card debt.
Total seasonally adjusted consumer credit outstanding, which includes revolving and nonrevolving credit, decreased at an annual rate of 8.5% in November, to $2.46 trillion, the report states.
Fitch Ratings reports that, while the economy is on a slow path to recovery, unemployment and credit card charge-off rates likely will hit new highs this year. Fitch forecasts unemployment to hit 10.5% by mid-year and card charge-offs on outstanding balances to reach 12%.