Fed: Revolving Credit Debt Dips to $996B

Americans' revolving credit debt has dropped to $996 billion in May, CNBC reports.

Revolving credit debt typically refers to credit cards, personal lines of credit and home equity lines of credit.

According to the Federal Reserve, the decline is the lowest since the Great Recession's drop to $833 billion in May 2011.

The Fed's report shows the revolving credit debt has dropped for three months in a row. In April, the debt totaled $1.020 trillion. 

The drop is a reflection of how spending habits have changed amid the coronavirus pandemic, according to CNBC.

While Americans are spending less during the coronavirus pandemic, the Fed's data shows that non-revolving credit debt, also known as installment debt, rose in May to $3.117 trillion, after a decrease in April to $3.111 trillion.

The $3.117 trillion balance is the second highest since the $3.123 trillion peak in March.

Non-revolving debt includes mortgages, auto, student and personal loans.

CNBC reports that as the economy rebuilds, the revolving debt will likely increase again.

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