US consumer borrowing rose $13.8 billion in June to record high despite fall in credit cards

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In this Wednesday, June 12, 2013 file photo, Jani McAllister browses through a sales rack outside Festivity, a boutique in Virginia Highlands, in Atlanta. The Federal Reserve reports how much consumers borrowed in June on Wednesday, Aug. 7, 2013. (AP Photo/Jaime Henry-White)

WASHINGTON – Americans borrowed more in June to buy cars and attend schools. But they were frugal again with their credit cards, indicating many are still wary of taking on high-interest debt.

The Federal Reserve says borrowing rose $13.8 billion in June from May to a seasonally adjusted $2.85 trillion, the highest ever. The gain followed a $17.5 billion increase in May.

The category that includes credit card use dropped $2.7 billion in June. That follows a gain of $6.4 billion in May, the largest in a year. Still, overall credit card debt has fallen 16.5 per cent from its July 2008 peak.

Borrowing for autos and student loans rose $16.5 billion in June. This category has been driven by loans to pay for college.

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