N.Y. Fed: Household Debt Reaches $12.84 Trillion

Outstanding household debt increased by 0.9 percent in the second quarter, rising by $114 billion to total $12.84 trillion, the Federal Reserve Bank of New York said today. The quarterly increase set a new record, coming one quarter after household debt topped its previous 2008 peak.

In the second quarter, credit card balances grew by $2.6 percent to $780 billion, while auto loan debt rose by 2 percent to $1.19 trillion. Mortgage debt rose by 0.7 percent, while balances on home equity lines of credit shrank by 0.9 percent. Student loan debt levels were unchanged at $1.34 trillion.

Overall delinquency rates were steady in the second quarter at 4.8 percent of outstanding balances. Severe auto and student delinquencies — outstanding balances at least 90 days past due — edged up, while dipping slightly for mortgages, HELOCs and credit cards. However, a New York Fed analysis showed that transitions into credit card delinquency ticked upward for the third straight quarter, with these delinquent borrowers concentrated among those with credit scores under 700.