Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

US household debt in 2016 posts biggest jump in a decade  Join our daily free Newsletter

MENAFN - AFP - 16/02/2017
No. of Ratings : 0
Add to Mixx!


(MENAFN - AFP) US household debt surged 460 billion last year, the biggest increase in 10 years, and has nearly returned to the peak level before the global financial crisis, the New York Federal Reserve said Thursday.

However, the increase in recent years has been driven by student debt and auto loans, rather than by the mortgages that were central to the 2008 crisis.

And delinquency rates are less than half of what they were in the peak period, despite worrying trends in auto and student loans, the New York Fed said in its latest quarterly household debt and credit report.

At 12.58 trillion at the end of the year, total household debt is less than one percent below the peak in the third quarter of 2008, just before the crisis erupted.

But the share of credit that is delinquent was 3.3 percent at the end of the year, well below the 8.5 percent rate of late 2008.

And debt considered seriously delinquent, defined as being 90 days or more past due, was down to 3.3 percent from 5.1 percent.

"Debt held by Americans is approaching its previous peak, yet its composition today is vastly different as the growth in balances has been driven by non-housing debt," said Wilbert van der Klaauw, senior vice president at theNew York Fed.

Since reaching a post-crisis low point in mid-2013, "the rebound in household debt has been led by student debt and auto debt, with only sluggish growth in mortgage debt."

Home mortgages still comprise about three-fourths of total household debt, and rose 231 billion last year. But the serious delinquency rate held steady at 1.6 percent in the second half of 2016, compared to 4.7 percent in the peak quarter.

With lenders keeping a tight rein on credit standards, most home loans are going to borrowers with high credit scores.

Auto loan balances continued their steady rise and auto loan originations for 2016 reached a new annual record in the 18-year history of this data series, jumping 93 billion last year.

Student loan balances jumped 78 billion last year and have risen in every year for the past 18 years. But in a troubling trend, the serious delinquency rate is now more than 11 percent, compared to eight percent in late 2008.

Credit card balances increased by 46 billion, and the aggregate credit card limit increased for the 16th consecutive quarter, with a serious delinquency rate of just above seven percent.

MENAFN1602201701430000ID1095252031


 


AFP




  MENA News Headlines
 Feb 26 2017 - Qatar Islamic Bank gets nod to raise AT1 Capital Sukuk limitThe Peninsula
(MENAFN - The Peninsula) Qatar Islamic Bank's (QIB) ordinary general assembly has given approval to increase the limit of the perpetual Sukuk (Additional Tier1 or AT1 Capital Sukuk) from QR5bn to ...

 Feb 26 2017 - Qatar Stock Index Gains 18.97 PointsThe Peninsula
(MENAFN - The Peninsula) Doha: Qatar Stock Exchange (QSE) index gained 18.97 points (+0.17%) when the bourse closed trading at 10,952.66 points Wednesday. The volume of shares traded increased ...

 Feb 26 2017 - Qatar- Action launches new corporate identityThe Peninsula
(MENAFN - The Peninsula) Action Global Communications yesterday announced the launch of its new corporate identity which reflects the company's strategic transformation now being led by its new ...

 Feb 26 2017 - Qatar- QICDRC appoints new JudgeThe Peninsula
(MENAFN - The Peninsula) The Qatar International Court and Dispute Resolution Centre (QICDRC) held its Annual General Meeting and appointed a new judge to the QFC Regulatory Tribunal. Lord ...

 Feb 26 2017 - Qatar Islamic Bank opens new branch at Awqaf TowerThe Peninsula
(MENAFN - The Peninsula) Qatar Islamic Bank (QIB)announced yesterday the official opening of a new branch at the Ministry of Endowment and Islamic Affairs (Awqaf) Tower in West Bay. Senior ...

 Feb 26 2017 - GCC firms 'should tap' non-bank options for fundsThe Peninsula
(MENAFN - The Peninsula) GCC businesses should explore alternative non-bank options available in the region to raise funds, rather than relying just on traditional sources of capital. Non-bank ...

 Feb 26 2017 - Qatar- QIC insured offers motor claims via WhatsAppThe Peninsula
(MENAFN - The Peninsula) QIC Insured, Qatar's leading insurer and the retail arm of QIC, yesterday announced the launch of a new service reporting motor claims directly through the call center or ...

 Feb 26 2017 - Ooredoo net profit rises by 4% to QR2.2bnThe Peninsula
(MENAFN - The Peninsula) Ooredoo Group's revenue touched QR33bn for the full-year of 2016, an improvement of 1 percent over 2015. In local currency terms, growth was driven by Ooredoo Qatar, Oman, ...

 Feb 26 2017 - Iran parliament stresses foreign investment in five-year economic planThe Peninsula
(MENAFN - The Peninsula) DUBAI: Iran's parliament passed a five-year economic development plan on Sunday that includes a sharp rise in foreign investment, though Tehran may not achieve that while ...

 Feb 26 2017 - Qatar- $50 oil price needed to spur investment: Al SadaThe Peninsula
(MENAFN - The Peninsula) Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada has said oil prices need to be higher than $50 a barrel to encourage oil sector investment. quot;You ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help