Consumer borrowing soars to record levels

FILE - (AP Photo/Michael Probst, File)

FILE - (AP Photo/Michael Probst, File)

Tips from Knoxville's CredAbility for student borrowers

  • Work prior to college or even during college.
  • Only take out loans for school, books and supplies. Don't borrow for living expenses. That apartment will end up costing you four times what it should.
  • Research scholarships ahead of time.
  • Consider starting at a two year college or junior college.
  • Try to live at home to avoid adding a dorm or apartment to the bill.

WASHINGTON (AP/WVLT) Americans increased their borrowing in May at the fastest pace in a year. Borrowing in the category that includes credit cards reached its highest point since the fall of 2010.

Increased borrowing can be a sign that consumers are feeling more confident.

The Federal Reserve says consumers increased their borrowing by $19.6 billion in May compared with April. That was the biggest jump since a $19.9 billion increase in May 2012.

Total borrowing reached a record $2.84 trillion.

The category that includes credit card use rose $6.6 billion, also the largest gain in a year. Credit card debt reached $847.1 billion, the highest level since September 2010 but still below the 2008 peak.

Borrowing on autos and student loans increased $13 billion.

The numbers come just a week after Congress failed to stop an interest increase for subsidized Stafford loans. Interest jumped to 6.8%, but could be reversed back to the original 3.4% following a vote by the Senate Wednesday.

Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to Please provide detailed information.

powered by Disqus


6450 Papermill Drive Knoxville, TN 37919 Phone - (865) 450-8888; Fax - (865) 450-8869
Gray Television, Inc. - Copyright © 2014 WVLT-TV Inc. - Designed by Gray Digital Media - Powered by Clickability 214713751