Consumer Borrowing Picks Up in August

Consumers stepped up their borrowing in August, especially when it came to taking out new loans to finance cars and to pay for vacations and school.

The Federal Reserve reported that consumers increased their borrowing by a seasonally adjusted $8.2 billion, or at a brisk annual rate of 5.2% from July to August. That pushed up consumer debt to $1.96 trillion.

Although previous Fed reports have included some education loans, Tuesday’s was the first to incorporate student loans extended by the federal government and by Sallie Mae, the largest provider of student loans.

Demand for revolving debt, such as credit cards, went up at a 2.1% rate in August, or by $1.2 billion. That compared with a 0.8% growth rate in July, or an increase of $453.6 million.

From Associated Press