Credit card debt drops, and debt management plan may help those struggling to join the trend

By Edith Barlow on May 8th, 2010

Trying to get out of credit card debt is a hallmark of good financial strategy, and a recent report from the Federal Reserve Board shows some consumers may have managed to do so.

Preliminary statistics from the Fed showed revolving consumer credit fell at an annual rate of 4.5 percent during March. Most of this type of debt is comprised of what is owed on credit cards.

Since the first quarter of 2009, revolving credit has fallen by roughly $82.5 billion. That decline accounts for most of the drop in consumer credit during that time, which fell $85.2 billion.

However, drops in consumer credit don't always mean that people are getting on top of their debts. For example, card companies writing off defaulted accounts also factor into revolving credit.

For those who find they are having problems with trying to pay off what they owe, there may be other options open to them. For example, a debt management plan may help reduce the amount of time it takes a consumer to pay off a card, thereby saving them in interest payments.

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