What is consumer deleveraging?

Yesterday, the Federal Reserve reported that outstanding consumer credit for November fell a worse-than-expected $7.9 billion, lending support to the notion that the consumer is deleveraging.

What exactly is consumer deleveraging? I hate to niggle but the details are important here and consumers don’t deleverage the same way that businesses and investors do.

http://www.ritholtz.com/blog/2009/01/consumer-deleveraging-only-just-begun/

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