($MACRO) Household debt dropped for the 12th consecutive quarter, according to second-quarter data released by the Federal Reserve on Friday that shows the continued drag from the bursting of the housing bubble.

Household debt declined by a seasonally adjusted annual rate of 0.6%, dragged lower by a 2.4% decline in mortgage debt as consumers took out fewer mortgages, paid off or had debts forgiven, the Federal Reserve reported in its voluminous flow-of-funds report. Consumer credit outside mortgages rose by 3.4%.