Credit in Economy
The assignment of bank credits (not personal loans) increases the money supply (creation of money), the repayment again reduces it. A demand stands for each credit in same height opposite in accordance with double record keeping. That is valid not only for the Buchgeld of the banks, but also for the cash notes and coins disbursed as credit. Here the owner of the money has theoretically a demand against the central bank and this a credit with the funds owner; a redeemability with the central bank into other values does not exist with the modern credit money Fiat Money however.
All credit money results from granting of credit and purchase of active by banks and disappears by credit repayment and sale of active by banks again. It is neither meaningful nor desirable that in a national economy in the entire one considerably credits are erased, since otherwise the money supply shrinks and would be damaged due to lack of liquidity the economy.