American households continue to sink into debt hole
New York – November 19, 2018
The total amount of US household debt for the third quarter of 2018 increased by 1.6%, or $219 billion, amounting to a record $13.5 trillion, according to the report of the Federal Reserve Bank (FRB) of New York.
Americans’ debt exceeds the pre-crisis level and has been growing for 17 consecutive quarters due to an increase in mortgage lending.
This is a record increase in the US household debt since 2017.
The volume of debts of the US population is 65% of GDP. This figure has remained stable in recent years.
The total share of overdue loans in the US at the end of the second quarter rose to 4.7%—the highest figure in 7 years. Particularly rapid percentage point increase came in the volume of overdue student loans—up to $37 billion, with the total volume reaching $1.44 trillion.
Also, at the end of the third quarter, the outstanding credit for car purchases reached an absolute record of $1.24 trillion, an increase of $9 billion for the quarter.
Mortgage debts at the end of June rose to $9.14 trillion, despite an increase in mortgage rates to about 4.6% from 3.4% in 2013.
American credit card debt increased by $15 billion to $844 billion.