Federal Reserve Bank of New York
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Accessed On: 26 May, 2017
Household Debt Reaches New Peak Driven by Gains in Mortgage, Auto, and Student DebtThe CMD’s latest Quarterly Report on Household Debt and Credit reveals that total household debt achieved a new peak in the first quarter of 2017, rising by $149 billion to $12.73 trillion—$50 billion above the previous peak reached in the third quarter of 2008. Balances climbed in several areas: mortgages, 1.7 percent; auto loans, 0.9 percent; and student loans, 2.6 percent. Credit card balances fell 1.9 percent this quarter.Total household indebtedness stood at $12.73 trillion as of March 31, 2017, marking a $149 billion or 1.2 percent increase from the fourth quarter of 2016. 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.