According to the New York Federal Reserve’s latest Quarterly Report on Household Debt and Credit, household debt rose $147 billion to $17.94 trillion.
For this quarter, the Fed stated that aggregate delinquency rates increased to 3.5 percent. Mortgage balances rose by $75 billion to $12.59 trillion at the end of September. Student loan balances grew by $21 billion and now stand at $1.61 trillion. Non-housing balances grew by $65 billion, a 1.3% rise from 2024.
Credit card balances increased by $24 billion to $1.17 trillion, while auto loan balances rose by $18 billion to $1.64 trillion. Home Equity Line of Credit (HELOC) balances climbed by $7 billion to $387 billion, marking the tenth consecutive quarterly increase since early 2022.
Despite income growth outpacing debt, many households still face financial stress. In a separate report, the NY Fed said higher wages are helping ease the burden of certain debts. They reported in Q3 that the total disposable income of Americans reached $21.8 trillion, and the ratio of total debt balance to income was 82%.”Relative to incomes, balances are actually lower than they were before the pandemic, ” the NY Fed commented.
By CEO NA Editorial Staff
