Consumer credit dives $9.5 billion in August

Americans trying to shake off their debt caused the worst drop in consumer credit in more than a year.

The unpredictable economy had people shunning credit cards and paying off cars and student loans, according to a report Friday from the Federal Reserve. Consumer credit swung down $9.5 billion in August, the first decline since September 2010 and the worst since April 2010.

The month before, credit levels saw an $11.9-billion increase.

Revolving credit, associated mostly with credit cards, tumbled for the second month in a row, down $2.2 billion. Non-revolving credit, linked to borrowing for school and auto purchases, slipped $7.3 billion.

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-- Tiffany Hsu

Photo: MasterCard credit cards. Credit: Jonathan Bainbridge / Reuters.