Americans have never been in so much debt Between July and September, US household debt climbed to a new record of $15.24 trillion, the Federal Reserve Bank of New York said Tuesday. It was an increase of 1.9%, or $286 billion, from the second quarter of the year."As pandemic relief efforts wind down, we are beginning to see the reversal of some of the credit card balance trends seen during the pandemic," such as lower spending in favor of paying down debt balances, said Donghoon Lee, research officer at the New York Fed......... Mortgages, which are the largest component of household debt, rose by $230 billion last quarter and totaled $10.67 trillion. Auto loans and student loan balances also increased, rising by $28 billion and $14 billion, respectively. Even though credit card debt has yet to get back to its pre-pandemic level, total debt is already $1.1 trillion higher than at the end of 2019.
It's all relative. Over the long term, household debt will mostly be growing. Our incomes are rising and the dollar is shrinking. Here is one way of looking at it. Though, I would be concerned that most of GDP accrues to the the top 1%.
Here is a better way. Nothing quite like the GFC. I hope I never see that again. At least the 80s was fun. We were very naive about credit back then. Americans learned their lesson. Japanese before that. For Korea, China and others...it's Squid Game.
%% NEVER was worried much about homebuyers debt, especially since i owe none on mine. Foreclosures is a different deal. Auto loans maybe a terrible idea unless you are in the car or lending/ bank business Dave Ramsey still gets plenty of ''debt free screams''