Shoppers Cut Back on Credit Card Usage

U.S. consumer borrowing in December had its greatest decline in more than a decade as households reined in credit card debt during the holidays by the largest percentage in 27 years.

Consumer credit fell at a 2.75% annual rate, or $4 billion, in December after a revised decline of $164 million in November, the Federal Reserve said. Borrowing grew 3.3% last year, the smallest gain since 1992.

Shoppers exercised restraint because of high unemployment, rising oil prices and declining stock values.