The numbers: Revolving credit, mainly credit cards, declined for the second straight month in June, the Federal Reserve said. Revolving credit fell at a 1% rate in June after a 3.5% drop in the prior month. Declines in credit-card borrowing are rare: The last time revolving credit fell for two straight months was during the COVID pandemic in 2020.

A New York Fed report shows credit card delinquency rates for Americans under 40 remain unusually elevated, with Gen Z facing increasing financial pressures.

Debt consolidation combines multiple loans into one with a single monthly payment. Credit card refinancing uses a balance transfer to reduce interest for a limited time. Debt consolidation offers predictable payments but may come with fees and longer payoff terms.

Consumers tacked on an additional $27 billion in credit card spending in the second quarter, the Federal Reserve Bank of New York said.

Credit card balances rose by $27 billion in the second quarter to $1.21 trillion, according to a new report by the New York Fed.