Fed: household debt in US rises to around USD17.8T in 2nd quarter

(MENAFN) In the second quarter of this year, U.S. household debt surged to nearly USD17.8 trillion, according to a report released by the Federal Reserve on Tuesday. This represents an increase of USD109 billion, or 0.6 percent, compared to the previous three-month period. The latest Quarterly Report on Household Debt and Credit reveals that this rise in debt encompasses several key categories, reflecting broader trends in consumer borrowing.

Mortgage balances saw a substantial increase, climbing by USD77 billion to reach a total of USD12.52 trillion. Additionally, credit card balances grew by USD27 billion, reaching USD1.14 trillion, while auto loan balances rose by USD10 billion, bringing the total to USD1.63 trillion for the quarter. These figures illustrate a continued expansion in household borrowing across various credit types.

The Federal Reserve's report also highlighted trends in delinquency rates. Over the past year, approximately 9.1 percent of credit card balances and 8.0 percent of auto loan balances have transitioned into delinquency. This indicates a notable increase in the number of accounts falling behind on payments. However, the report also noted that early delinquency transition rates for mortgages rose slightly by 0.1 percentage point but remain relatively low compared to historical standards.

Overall, the data underscores a growing trend in household debt, with notable increases across major borrowing categories, and highlights emerging challenges related to delinquency in certain credit areas.

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