by Alison Storm | 06/7/10

Credit card balances held by consumers dropped $8.5 billion in April, according to the Federal Reserve. The decline in consumer credit card debt marked the 19th straight month of decreases on record. Consumer credit card balances fell by 12 percent, however overall consumer debt actually increased by half of a percent to $2.440 trillion in April. The report collects data on auto loans, student loans and loans on things like mobile homes, boats and trailers.

Nearly 54 million US homes have credit card debt, but many Americans are paying it down. The average household either paid off $2,550 in credit card debt between September 2008 and March 2010 or had it charged off as uncollectable.The amount of credit card balances that banks have given up on collecting jumped to 11.1 percent in May from 10.93 percent in April.

Some experts expect Americans to keep their debt down-- partly because fewer jobs mean they're not able to afford high payments and also because credit card companies are lowering credit lines. Experts say Americans are both unwilling and unable to increase their credit card debt. Recent data shows that banks spend the first three months of 2010 tightening their lending standards for both consumers and small businesses. That may be bad news for retailers. “Promotional activity is essential to drive activity in stores,” Chief Executive Officer John Rishton said on a recent conference call according to Business Week. “Consumers continue to be cautious.”