EddieJayonCrypto
18 Aug 24
Americans are carrying record levels of household debt, with US credit card debt reaching $1.14 trillion, according to a report from the New York Fed. Overall, Americans have more student loan, mortgage, credit card, and home equity revolving debt than ever before. The Fed states that aggregate hous...
According to a report from the New York Fed, US credit card debt has soared to a record $1.14 trillion, contributing to a total household debt of $17.80 trillion. This surge in debt has raised concerns about the financial stability of consumers.
The Federal Reserve has noted a slight increase in delinquency transition rates for credit cards, auto loans, and mortgages. Approximately 4.9% of consumers have a third-party collection account on their credit. Bank of America CEO John Moynihan has issued a warning about a significant consumer spending slowdown, revealing that the bank's consumer base is currently spending at a rate half of what it was last year.
This data signifies a substantial surge in household debt, with Americans carrying more student loan, mortgage, credit card, and home equity revolving debt than ever before. The aggregate household debt balances have increased by $109 billion in the second quarter of 2024, marking a $3.7 trillion increase since the end of 2019. Additionally, consumers seem to be experiencing a slowdown in spending amid these higher debt loads, posing potential challenges for the economy.