Americans' debt level notches a new record high
Source: Reuters
AUGUST 15, 2017 / 11:04 AM / 2 HOURS AGO
Jonathan Spicer
NEW YORK (Reuters) - Americans' debt level notched another record high in the second quarter, after having earlier in the year surpassed its pre-crisis peak, on the back of modest rises in mortgage, auto and credit card debt, where delinquencies jumped.
Total U.S. household debt was $12.84 trillion in the three months to June, up $552 billion from a year ago, according to a Federal Reserve Bank of New York report published on Tuesday.
The proportion of overall debt that was delinquent, at 4.8 percent, was on par with the previous quarter. However a red flag was raised over the transitions of credit card balances into delinquency, which the New York Fed said "ticked up notably."
Loosening lending standards have allowed borrowers with lower credit scores to access credit cards, Andrew Haughwout, an in-house economist, said in the report.
Read more: http://www.reuters.com/article/us-usa-fed-debt-idUSKCN1AV1PY
Democrats_win
(6,539 posts)We all understand why. Despite record low unemployment (2.3% in Denver!) wages are not increasing. However, rents and prices are going way up.
Where is all the money going? To the rich to loan you more money at high interest rates. This whole episode makes it clear that we need to raise taxes on the rich to prevent the poor from being nickel and dimed to death. We need to raise the minimum wage and we need Unions to fight for workers!
sandensea
(21,636 posts)Our times in a nutshell. Thank you for that.
CountAllVotes
(20,875 posts)Sanity Claws
(21,849 posts)I wonder how much of the entire debt load is just student loans.
DonViejo
(60,536 posts)Javaman
(62,530 posts)llmart
(15,540 posts)It didn't take long before they were back to building/buying the McMansions once again and driving SUV's.
They never learn.
erpowers
(9,350 posts)I bet this is one record Donald Trump will not take credit for and will claim this is the result of President Obama's job killing policies. In the next sentence Trump will talk about how well the economy is doing under him. He will say the stock market hit a record high and that unemployment is at 4.3%.
keithbvadu2
(36,816 posts)Trump and the republicans really do own this (I agree with you)
He took credit for the economy even before inauguration.