Consumers slash borrowing by record amount
Americans cut debt by $21.6 billion in July; $4 billion was expected

updated 6:14 p.m. CT, Tues., Sept . 8, 2009
WASHINGTON - Consumers slashed their borrowing in July by the largest amount on record as job losses and uncertainty about the economic recovery prompted Americans to rein in their debt.

Economists expect consumers will continue to spend less, save more and trim debt to get household finances decimated by the recession into better shape. Such behavior, though, is a recipe for a lethargic revival, because consumer spending accounts for 70 percent of economic activity.