Consumer borrowing up, but less on cards
The Consumer Financial Protection Bureau said of the 4,254 complaints it forwarded to card issuers, the companies have said 74 percent have been at least partially resolved. In 71 percent of these cases the customer did not disagree. Credit: Bloomberg
Americans borrowed more in September to buy cars and attend college, but they charged less to their credit cards for a third straight month. The figures suggest consumers are growing more cautious about taking on high-interest debt in a weak economy.
Total consumer borrowing rose by $7.4 billion in September, the Federal Reserve said Monday. In August it had fallen 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. But the category that covers credit card purchases dropped 1 percent after larger declines in July and August.
Credit card use has sunk nearly 19 percent since September 2008, the height of the financial crisis, with debt carrying high interest rates, jobs scarce, pay raises few and unemployment stuck near 9 percent for two years.
"Households continue to prefer cash over credit as employment, income and wealth prospects remain feeble," said Gregory Daco, principal U.S. economist at IHS Global Insight.
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