The last time American consumer debt was this high was.. well…NEVER. But now, it seems we are engaged in a high stakes game of consumer debt roulette. And the House is the only one who will win this game.
Last summer, it was reported that people owed more on loans, credit cards, and payment plans than ever in history. The country surpassed the spike that led to the crash of 2008 back in March when debt reached a mind-boggling $12.73 trillion in the first quarter of the year.
Here’s the breakdown, via ZeroHedge:
- Total household indebtedness stood at $12.73 trillion as of March 31, 2017. This increase put overall household debt $50 billion above its previous peak set in the third quarter of 2008 and 14.1 percent above the trough set in the second quarter of 2013.
- Mortgage balances, the largest component of household debt, reached $8.63 trillion as of March 31, a $147 billion uptick from the fourth quarter of 2016.
- Balances on home equity lines of credit fell slightly in the first quarter, down $17 billion to $456 billion.
- Non-housing debt saw mixed changes—an increase of $10 billion in auto loans and $34 billion in student loan balances, and a $15 billion drop in credit card balances.
And we have exceeded the terrible record even more. This year, the debt for American households has grown by 605 billion dollars. THIS YEAR. That is on top of the insane numbers mentioned earlier.
And it’s causing serious issues.
From extended lines of cash-strapped consumers at New York food pantries to a rise in mental health problems, the latest New York quarterly Fed data paints a dire picture: US household debt has grown by $605 billion in the past 12 months, with $116 billion, or nearly 1 percent, hitting in the latest quarter. Debt is mushrooming everywhere — on mortgages, student loans, auto loans. Credit card debt, meanwhile, has jumped by 3.1 percent in the latest quarter. (source)
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