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

The Caribbean Association of Banks, Inc. is the representative body and recognized voice for banks and other financial institutions in the Caribbean. We seek to influence policies and legislation which impact the sector by advocating on our members’ behalf and participating in the global network of similar institutions.

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