It's Tuesday, and this is the Ramsey Call of the Day, part of the Ramsey Network.

Ken Coleman, Ramsey Personality, number one bestselling author and host of the Ken Coleman Show on Radio XM and on a well-listened to well-traveled podcast is with me as my co-host today here on the air.

So, Ken, according to this article at Yahoo Finance, the Federal Reserve Bank of New York reported that the COVID-19 pandemic had led to paydowns of household debt in the second quarter of 2020.

Leading to the first quarter over quarter decline since 2014,

the New York Fed's Consumer Debt Panel, or Consumer Credit Panel,

which uses national data from Equifax, shows the total household debt fell by $34 billion to $14.27 trillion as of June 30th.

The most notable decline in consumer debt came from credit card spending, where balances fell $76 billion in the second quarter, the steepest decline in the history of the New York Fed's data.

Auto and student loan balances were roughly flat.

The data shows signs of caution over consumer spending.

Well, no kidding.

Mortgage balances, however, continued to rise and added $63 billion.

So basically, we got student loans flat.

We got, and to the extent that this particular region of the Fed is indicative of everything else,

we don't know about that for sure, but it makes sense.

It makes sense.

So credit card debts down, student loan debt's flat, mortgages are up because people are buying houses still.

And auto loans are basically flat. Our auto debt is flat. So what amounts to is that people

weren't going to restaurants and they weren't traveling and they weren't using their credit

cards. And they paid them down because they were scared.

That's right.

Some good news, though, in this June, we saw consumer spending rise by 5.6%.

So that speaks to some confidence.

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