Consumers increased their installment debt by $1.2 billion in February, the sixth straight monthly advance.

Consumers still burdened by high installment debt were again cautious about major expenditures.

Second-mortgage home improvement loans, another high-interest form of credit, would also come under the law, he said, as do all other installment debts.

The Economy Consumers took on $8.1 billion more installment debt in October than they paid off, an unexpectedly large rise.

Retail sales generally have been soft this year as consumers paid off high installment debts.

"At age 45 or thereabouts, people stop taking on installment debt and begin home equity borrowing, which continues until age 65."

They are paying down installment debt and restraining spending on big-ticket items like housing and cars.

Having installment debt - like a mortgage, in which you pay a fixed amount each month - demonstrates that you can manage a large loan.

The law evidently prompted many consumers to substitute home equity loans, which remained fully deductible, for installment debt.

It was the second consecutive month that installment debt decreased at a 3.7 percent rate.