US household debt has exploded to a staggering $18.04 trillion, a new record high. This is according to a recent report from the Federal Reserve Bank of New York.
Debt Breakdown
The massive debt figure represents a $93 billion increase from the previous quarter and a whopping $3.9 trillion jump since the end of 2019. Mortgages make up the lion’s share at $13 trillion, followed by auto loans ($1.66 trillion), student loans ($1.61 trillion), and credit cards ($1.21 trillion).
Delinquency on the Rise
The report also highlights a worrying trend: Americans are struggling to keep up with their payments. Delinquency rates are climbing across the board.
- Credit Cards: A concerning 11.4% of credit card balances were at least 90 days past due in Q4 2024, up from 9.4% the previous year.
- Other Loans: The delinquency rate for other types of loans also increased to 9.2%.
- Auto Loans: 4.8% of auto loans were delinquent for over three months.
- Mortgages, Student Loans, and HELOCs: These showed lower, but still concerning, delinquency rates.
Overall, 3.6% of all outstanding debt was delinquent in some way, a slight increase from the previous quarter. The increase in serious delinquencies (90+ days past due) was most notable for auto loans, credit cards, and home equity lines of credit.
Bankruptcies Increase
Adding to the grim picture, around 123,000 Americans filed for bankruptcy in the last quarter of 2024.
Disclaimer: This information is for general knowledge and does not constitute financial advice. Always conduct thorough research before making any financial decisions./p>
