Credit card use leads to rise in consumer borrowing

WASHINGTON (AP) - Consumer credit is on the rise, with shoppers having to depend more on their credit cards to finance purchases.

The Federal Reserve reports consumer credit increased at an annual rate of 2.3 percent in October. That's faster than September's 1.6 percent clip. The jump reflects growth in credit-card debt as home refinancings slow down and people become more reluctant to take equity out of their houses. Analysts also say high gas prices are pumping up credit growth as more consumers use credit cards to buy fuel. The number of auto loans dropped in October for the second month in a row. The dip reflects a slump in the demand for new cars.