US Household Debt Near Record on Student Loans

US Household Debt Near Record on Student Loans

US Household Debt Near Record on Student Loans

US household debt hit near an all-time high in Q-4, reaching $12.58-T, as credit was more readily available for mortgage, auto and student loans, a Federal Reserve Bank of New York survey showed Thursday.

Total debt was up $460-B from a year ago and is now just 0.8% below an all-time peak of $12.68-T in Q-3 of Y 2008, before the worst of the financial crisis and Great Recession.

But since the housing market-inspired meltdown, mortgages have accounted for a smaller share of overall loans.

“Since reaching a trough in mid-2013, the rebound in household debt has been led by student debt and auto debt, with only sluggish growth in mortgage debt,” a New York Fed senior vice president, said in the report.

Some 4.8% of the debt was in some stage of delinquency.

Mortgage debt was $8.48-T at the end of the last Quarter, up $231-B from a year earlier. Student loan debt stood at $1.31-T, up $78-B from a year ago, while auto debt hit $1.16-T, rising $93-B in a year.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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