by Wolf Richter
Consumer debt to GDP spikes, but why did credit card balances plunge and new delinquencies decline?
OK, as I mentioned on Friday, things are a little crazy in the consumer-debt arena at the moment: No Payment, No Problem: Bizarre New World of Consumer Debt. But there is another aspect to it – that of the American debt-slaves themselves. And there are all kinds of things happening.
Consumer debt – student loans, auto loans, credit cards, other revolving debt and personal loans but excluding mortgages and HELOCs – declined to $4.1 trillion (not seasonally adjusted) in the second quarter, according to Federal Reserve data.