WASHINGTON–Consumer indebtedness increased at an annual rate of 2.5 percent in February, reaching $2.54 trillion, excluding home mortgages. Although that amount is the highest on record, the rate of borrowing during the month was less than the 3.25 percent rate in January, and well below the 4.5 percent rate in December.
Of the total amount of debt, $1.59 trillion was in non-revolving credit, used for such expenses as automobile loans, mobile homes, education, boats, trailers or vacations. These loans may be secured or unsecured.
The remainder was for revolving credit, such as used for purchases by credit cards, according to the Federal Reserve Board, which released the figures last evening.