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.


About Author

Evan Sparks

Evan Sparks is editor-in-chief of the ABA Banking Journal and vice president for publications at the American Bankers Association.