U.S. Household Debt Surpasses 2008 levels

The Federal Reserve Bank of N.Y. has published data which shows that U.S. household debt has exceed 2008 levels. While this is not a sign of economic prosperity or doom it does offer deep insight into the debt dynamics of the U.S. household.

Household debt has climb to $12.73tn in Q1/2017, marking a $142bn (1.2%) increase over peak levels in 2008. Mortgages experienced the largest increase followed by Student and Auto loans. (Interesting fact: U.S. student debt is larger than the GDP of 93% of the countries in the world.)

More interesting, is the behavior of delinquency rates. While most types of debt have experienced a downward trend in delinquency rates from 2008, student debt stands out. From 2004 to present, it has remained stubbornly high at a 10% delinquency rate and is the most likely to transition from a 30-day delinquency category to a 90-day-plus.

Link: https://www.newyorkfed.org/microeconomics/hhdc.html

Link: http://libertystreeteconomics.newyorkfed.org/2017/05/household-borrowing-in-historical-perspective.html

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