American consumers increased credit by an annualized 7% pace in May, mainly to buy cars and trucks and pay for college loans. Consumers increased their debt by a seasonally adjusted $16.1 billion in May, the Federal Reserve said Wednesday. Credit had climbed at a 6.2% annual pace in April, 7.9% in March and 8.5% in February. The amount of credit taken out by consumer has risen every month since August 2011. Non-revolving credit that involves longer-term debt such as federal student loans jumped 7%. Credit-card debt rose a much smaller 2.1% after an 11.5% spike in April. Total credit card debt has grown very slowly since 2010 and still hasn't returned to its all-time high even though the population has increased. Yet nonrevolving loans have surged.
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