Households Continue To Trim Debt in Second Quarter

New York, NY, Aug. 18, 2010–American household debt was lower last quarter as consumers closed credit card accounts and took out fewer mortgages, according to a survey by the Federal Reserve Bank of New York.

Consumer indebtedness totaled $11.7 trillion at the end of June, a decline of 1.5% from the previous three months and down 6.5% from its peak in the third quarter of 2008.

Delinquency rates declined for the first time since early 2006, falling to 11.4% of outstanding debt from 11.9% on March 31.