Consumer borrowing on the rise - KWWL - Eastern Iowa Breaking News, Weather, Closings

Consumer borrowing on the rise


Consumer borrowing is once again on the rise.  Americans borrowed more in September to buy cars and attend college.  However, folks have cut back on using their credit card use for a third straight month.  The latest data suggest consumers are being cautious about taking on high-interest debt in the weak economy.

The Federal Reserve says total consumer borrowing rose by $7.4 billion.  It had fallen in August by the most in 16 months.

The September increase reflected a 5.8 percent increase in borrowing in the category that includes car and student loans.  The category that covers credit card purchases dropped 1 percent after declines of 3.4 percent in August and 5.1 percent in July.

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