Americans' debt levels continue to climb to new heights at a time when economic conditions are becoming increasingly less stable.
Household debt balances set a fresh record high of $17.05 trillion during the first quarter, growing $148 billion or 0.9% from the fourth quarter of last year, the Federal Reserve Bank of New York reported Monday.During the first quarter, the increases in debt were seen across practically all categories, with larger balances for mortgages, home equity lines of credit, auto loans, student loans, retail cards and other consumer loans.
"I think that reflects more people using credit cards to finance day-to-day necessities ," he said, noting that Bankrate research shows that 46% of cardholders carry debt month to month, with 54% paying in full, Rossman said. Last year, 39% carried debt month to month. Despite debt climbing to new records, households on average are effectively managing their obligations: The share of current debt becoming delinquent increased across most debt types; however, for the most part, they remain below pre-pandemic levels, according to the New York Fed report. Delinquency rates fell sharply at the outset of the pandemic.
Auto loan delinquencies for younger borrowers, those under the age of 40, surpassed pre-pandemic levels. With inflation driving up car prices, the average payment is hovering around $700 a month, Rossman said. And student loans - one area where some Americans have been getting some breathing room in part because of pandemic-era forbearance programs - could be another shoe to fall at a time when recession fears are growing and other macroeconomic concerns are looming, Schulz said.
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For first time ever, Americans carrying more than $17 trillion in debtAmericans' debt levels continue to climb to new heights at a time when economic conditions are becoming increasingly less stable.
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For first time ever, Americans carrying more than $17 trillion in debtAmericans' debt levels continue to climb to new heights at a time when economic conditions are becoming increasingly less stable.
Consulte Mais informação »
For first time ever, Americans carrying more than $17 trillion in debtAmericans' debt levels continue to climb to new heights at a time when economic conditions are becoming increasingly less stable.
Consulte Mais informação »
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