Household Debt Surges at Fastest Pace Since 2007

The epidemic housing boom, soaring credit card bills, and inflation are driving up household debt at an alarming rate. The interest rates on these obligations are also rising at the same time.



Household debt balances are increasing more quickly than they have in any other time since before the Great Recession, despite the fact that interest rates are high on almost all loans, from new mortgages to variable-rate credit cards.


The Federal Reserve Bank of New York reports that since the end of 2019, total household debt has increased by $2.75 trillion, driven primarily by rising mortgage balances and a rise in revolving credit card debt as inflation has outpaced wage growth this year.


The total amount of outstanding debt is at a record high of $16.9 trillion as of the fourth quarter of 2022. The rate of growth is the greatest it has been since the third quarter of 2007 and is 2.36% quarter-over-quarter.


Many Americans now have greater monthly loan payments due to rising interest rates and rising consumer debt, which is unbalanced for household budgets that are already under pressure from rising inflation. Here are some recent trends in outstanding debt balances and what you may do if you're having trouble making your payments.




According to Wilbert van der Klaauw, a New York Fed economic research advisor, "despite historically low unemployment keeping consumers' financial footing generally sound, stubbornly high prices and growing interest rates may be straining some borrowers' ability to repay their debts."


Previous Post Next Post

نموذج الاتصال