Consumers cut back on credit card use in June

Americans cut back on credit card use in June, a sign that high unemployment and slow growth have made some more cautious about spending.

Still, total consumer borrowing increased as many kept taking out loans to buy cars and attend school.

Consumer borrowing rose by $6.5 billion in June from May to total $2.58 trillion, the Federal Reserve said Tuesday. That’s just below the all-time high reached in July 2008.

Auto and student loans rose by $10.2 billion to $1.71 trillion in June.

Credit card debt fell $3.7 billion to $865 billion. That’s only 1.6 percent above the post-recession low reached in April 2011.

Americans have been relying less on credit cards since the 2008 financial crisis and Great Recession.

At the same time, student loan has risen 54 percent since mid-2008 to total $902 billion as of March this year, according to the Federal Reserve Bank of New York.

Student loans now account for roughly 35 percent of all consumer debt, up from less than a quarter four years ago. That makes it the biggest source of consumer debt outside of mortgages.

The rise partly reflects high unemployment, which has led many to seek better education and skills in a more competitive labor market.

Apple planning to ditch YouTube app for iPhone

Apple says the next version of its software for the iPhone and iPad won’t come with a pre-installed YouTube application.

Users will be able to play YouTube videos in the Web browser, said Apple spokeswoman Trudy Muller. Mountain View, Calif.-based Google Inc., which owns YouTube, is also working on a downloadable app, she said.

Muller said that Apple Inc.’s license to include the YouTube app has expired, but did not explain why it hasn’t been extended.

Google said it’s working with Cupertino, Calif.-based Apple to ensure a quality YouTube experience.

Google has its own operating system for smartphones that compete with the iPhone. Apple has sued companies that use it, saying it copies features from the iPhone. In June, Apple said the next version of its operating system will replace Google Maps with an Apple app.

Freddie Mac posts quarterly profit, won’t need more aid

Government-controlled mortgage giant Freddie Mac posted net income of $1.2 billion for the second quarter and isn’t requesting any additional federal aid for the period.

The government rescued Freddie and sibling Fannie Mae in September 2008 after losses on risky mortgages threatened to topple them.

Taxpayers have spent about $170 billion to rescue Fannie and Freddie, the costliest bailout of the 2008 financial crisis. It could cost about $200 billion more to support the companies through 2014 after subtracting dividend payments, according to the government.

This is the fifth quarter in which Freddie hasn’t requested new federal aid since it was taken over.

Freddie Mac requested $19 million in federal aid in the first quarter. The company received $7.6 billion for all of 2011 and $13 billion for all of 2010.

McLean, Va.-based Freddie Mac said Tuesday that its net income attributable to common shareholders amounted to 37 cents per share in the April-June period. That compares with a loss of $3.76 billion, or $1.16 per share, in the same period a year ago.

Fannie and Freddie own or back about 60 percent of all U.S. mortgages.