It seems that with financial crisis looming around every corner, the debt raised by credit cards keeps slipping downward. People are more worried about losing everything they have and, therefore, they are doing without some of the things that their credit cards helped them get before.

The Federal Reserve’s credit update has stated that credit card balances have declined to the lowest since 2005. This is based on revolving and non-revolving loans, mostly in the form of personal and auto loans and doesn’t reflect real estate loans in any way.

Credit Card Debt Still Falling

Although May’s decline was moved up from $9.15 billion to $5.28 billion, and the forecast for June was less than expected, the persistent downward trend is a very good thing to see. People are paying off their debts and saving what money they have instead of spending it.

While this may mean a slower recovery turnaround for the financial crisis looming over our heads, people seem to be learning how to be more fiscally responsible so that there won’t be a next time when the whole of the financial world comes crashing down around everyone’s heads. At least we can all hope there isn’t going to be a next time.