The latest Household Debt and Credit Report from the New York Federal Reserve showed a $197 billion increase in total household debt during Q3, reaching $18.59 trillion. Mortgage debt, which represents the bulk of household debt, grew by $137 billion to $13.07 trillion. Non-housing debt also increased with credit card balances rising by $24 billion from the previous quarter to $1.23 trillion and student loan balances increasing by $15 billion to $1.65 trillion. Household debt levels are an important component of assessing the financial health of consumers, especially when compared to income levels. The New York Fed noted that, while household debt balances are growing, the pace of growth is moderate and delinquency rates have been stabilizing. Nevertheless, household debt may be an important indicator to monitor over the near term.
Source: Federal Reserve Bank of New York Consumer Credit Panel/Equifax.