Consumers cashed in close to $200 billion in maturing CDs during the first half of 2010 and used about 15 percent ($29 billion) of this amount to pay down revolving credit such as credit cards and lines of credit, according to a new analysis from Market Rates Insight (MRI).

The remaining balance of the maturing CDs, about $171 billion, was moved to liquid accounts such as money market, savings and checking accounts, according to a statement.

Total consumer debt – revolving and non-revolving – decreased from $2.451 billion in January to $2.422 billion in June – a decrease of $29 billion, according to a statement. The majority of the decrease in consumer debt during the same time period occurred in credit cards and other revolving credit from $859 billion to $832 billion – a decrease of $27 billion. An analysis of the relationship between CD balances and credit card balances indicates that when balances of CDs go down, credit card balances go down and vice versa.

"We are seeing some of the implications of the low interest-rate environment" said Dan Geller, executive vice president at MRI. "Long-term CDs maturing now are offered a fraction of the interest rate they originally carried. For example, a three-year $10K CD that was opened in September of 2007 at the national average rate of 4.32 percent can now be rolled over for three more years at the national average rate of 1.80 percent – a reduction of 58 percent in the return value. As a result, some consumers are opting to cash in their maturing CDs, and pay high-interest credit card balances."