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.