Americans Cut Debt for the First Time on Record

NEW YORK (CNNMoney.com) -- In a sign that Americans' spending habits are shifting, household debt fell for the first time ever, based on data going back to 1952.

According to a Federal Reserve report released Thursday, consumer debt fell an annualized $30 billion, or 0.8% in the third quarter to $13.91 trillion.

Americans saw their net worth decline by $2.8 trillion, or 4.7%, in the third quarter, dragged down by precipitous declines in home values and the stock market.

The net worth of U.S. households fell to $56.5 trillion at the end of September, according to the Federal Reserve's flow of funds report, which was released Thursday.

Home values declined by $347 billion in the quarter to $19.1 trillion. The net value of stock holdings for households fell $921.8 billion to $7.3 trillion.