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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsU.S. household debt hits record high of $14.15 trillion
Total U.S. household debt reached a record $14.15 trillion at the end of the year after increasing by $193 billion, or 1.4%, in the fourth quarter of 2019, according to the Feds Quarterly Report on Household Debt and Credit.
The report, based on a nationally representative sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data, noted that total household debt is now nominally $1.5 trillion higher than the pre-recession peak of $12.68 trillion in the third quarter of 2008.
The rise in household debt, led by mortgage balances, marked the 22nd consecutive quarterly increase. Housing balances rose $120 billion from Q3 to December 31, 2019, ending the year at $9.56 trillion.
Non-housing balances increased by $79 billion in the fourth quarter to hit a record $4.20 trillion. The Q4 increases included $16 billion in auto loans, $46 billion in credit card balances, and $10 billion in student loans.
https://money.yahoo.com/us-household-debt-hits-record-high-143940395.html
mr_lebowski
(33,643 posts)At least that's the case when you're sourcing numbers from Equifax, who know how much you OWE, but do not know how much your home is worth/how much equity you have in it.
Not saying there's not cause for alarm here, but the relatively high value of homes along with low interest rates, is causing a lot of people to both buy, and to refi ... so it does make sense the debt level is increasing.
I think these are some fairly raw numbers that would need more analysis to really prove illustrative ... the fact that this is the 22nd consecutive quarter this happened, and that we're now $1.5T higher than the 2008 peak ... suggests to me that we've had a new record for quite a few quarters in a row now.
The question is ... is this a good amount of debt, or a bad amount? And that's a very complex question.
democratisphere
(17,235 posts)THIS is a significant indication of how bad the Voodoo Economics economy really is!
mr_lebowski
(33,643 posts)If I owe $300,000 it looks like I have a lot of debt. If, at the same time, my home is worth $500,000 and I have $1,000,000 in my 401k ... then it doesn't.
See what I'm saying?
democratisphere
(17,235 posts)far less than you thought you had.. Current markets are overvalued. The bubble is just waiting to burst.
mr_lebowski
(33,643 posts)democratisphere
(17,235 posts)with a ton of credit card, personal loan debt and other debt. The real economy is no where near as good as the liars would like you to believe.