Consumers Cut Credit Card Use for 24th Month

Consumer borrowing fell again in August as consumers cut back on credit card use for the 24th consecutive month, the Federal Reserve said Thursday.

Borrowing by consumers declined by $3.3 billion in that month. It was the 18th drop for overall consumer borrowing in the past 19 months.

Americans are borrowing and spending less as they face widespread unemployment and uncertainty about their financial futures. The reduced use of credit by consumers is a drag on the recovery, which has yet to show a sustained rebound.

Another cause of the decline is banks’ slow recognition that many debts will not be repaid. Banks gave up on $42.5 billion in credit card debt in the first half of 2010, according an analysis by the website CardHub.com. The annual rate is more than twice what it was in 2007.

Borrowing increased modestly for one-time loans such as auto loans. That gain was offset by a steep drop in the category that includes credit cards.

DANIEL WAGNER, AP Business Writer WASHINGTON