Federal Reserve numbers released on September 8, 2011 show that the amount of revolving consumer debt outstanding dropped in the last reported period, July.
Revolving debt fell to $792.5 billion which is the lowest level since August 2004.
This data represents a lower per capita indebtedness since the U.S. population has grown from 292 billion in 2004 to about 311 billion this year and a lower household debt levels since households have grown from 122 million in 2004 to about 130 million in 2011.
If we look at households only the amount of revolving debt per household would be:
2004 – $6,459
2011 – $6,092
To make the number even more obvious, if we adjust 2004 debt levels for inflation the 2011 equivalent would be $7,400. So essentially the drop in consume debt per household has been, in adjusted dollars, from $7,400 to $6,459.
The reason this is a continued issue is that debt relief providers are attempting to survive with debt help at a time that the amount of debt consumers are burdening is dropping.
The bottom line is that with dropping debt levels the number of debt relief providers will need to shrink in order for the stronger companies to survive. There does not appear to be sufficient demand for all the current providers.
So if we calculated it all out, the reduction in consumer debt would actually be below 2004 levels when you include the adjustment for inflation.Consumer Debt Drops to 2004 and Earlier Levels by Steve Rhode