Consumer Credit Rises 5.6% In February, Despite Sharp Drop In Credit-card Debt

Consumer credit grew at a seasonally adjusted annual rate of 5.6%, for a gain of $15.5 billion in February, the Federal Reserve said Tuesday. This is the fastest pace of growth since October. In the month, all of the increase came from nonrevolving debt, like car and student loans, which grew at a 9.4% rate up from a 5.8% rate in January. This is the fastest pace since February 2013. Revolving, or credit-card, debt declined at a 5% rate in February after a 1.4% decline in the prior month. This is the biggest decline in credit card loans since April 2011.