Consumer Credit Falls in April

Consumer credit dropped by a record 19.6-percent rate in April, due to problems that have arisen during the COVID-19 pandemic.

It fell by 19.6 percent, or $68.8 billion, which is a record that has not been seen since the 1940s. It was a much bigger decrease than economists were expecting, who predicted a $14-billion drop.

“Revolving credit, like credit cards, dropped a record 64.9% in April. Nonrevolving credit, typically auto and student loans, fell 4%. The data does not include mortgage loans. The savings rate hit a record high in April as spending dropped and Americans received stimulus checks from the government,” says MarketWatch.