WASHINGTON (AP) – Consumers pulled back on credit card debt in January, leading to the smallest increase in consumer borrowing in more than four years.
The Federal Reserve says total borrowing rose $8.8 billion in January compared to an increase of $14.8 billion in December. It was the smallest monthly gain since borrowing only went up $7.6 billion in July 2012.
The slowdown reflected a big reduction in the category that covers credit card debt, which fell $3.8 billion in January. It marked the first time credit card debt had fallen since February 2016 and was the biggest reduction since October 2010.
Borrowing for auto loans and student loans rose $12.6 billion in January, slightly more than in December.