Posted: May 7, 2013 12:11 PM by Associated Press
WASHINGTON (AP) - Americans cut back on using their credit cards in March, suggesting many were reluctant to take on high-interest debt to make purchases.
The Federal Reserve says consumer borrowing rose just $8 billion in March from February to a seasonally adjusted $2.81 trillion, the smallest increase in eight months.
The gain was driven entirely by more loans to attend school and buy cars. The category that measures those loans increased $9.7 billion.
A measure of credit card debt fell $1.7 billion and remains 17.2 percent below its peak set in June 2008.
Since the recession, consumers have been more cautious about using credit cards. Economists believe consumers will stay cautious this year, in part because of an increase in Social Security taxes that has reduced tax-home pay for most Americans.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
PLEASE HELP US MODERATE COMMENTS
Offensive or inappropriate comments are subject to removal. To report a comment, please e-mail us at email@example.com, and include the name of the story and information on the comment.
Thank you! KSBY.com
Get deals up to 80% off here!
Find the lowest gas prices in your area
Submit your photos to KSBY
Check out our calendar of events
Save with Hot Deals across our counties!
Events across the Central Coast
Follow The CW5 on Facebook.
The KSBY online public file.
What do you think? Leave us your feedback.
KSBY is your official CA Lottery station for San Luis Obispo and Santa Barbara Counties