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American household debt reached nearly $ 15 trillion

2021-08-03T23:52:06.285Z

Americans are more in debt than ever, amid rising credit card spending and home debt. Biden: CDC to Propose Eviction Strategy 0:54 New York (CNN Business) - Americans are more in debt than ever. An increase in spending on credit cards and home purchases caused US household debt to rise by $ 313 billion, or 2.1%, in the second quarter, according to the Federal Reserve Bank of New York. York. It is the largest nominal jump since 2007 and the largest percentage increase in seven and



Biden: CDC to Propose Eviction Strategy 0:54

New York (CNN Business) -

Americans are more in debt than ever.


An increase in spending on credit cards and home purchases caused US household debt to rise by $ 313 billion, or 2.1%, in the second quarter, according to the Federal Reserve Bank of New York. York.

It is the largest nominal jump since 2007 and the largest percentage increase in seven and a half years.

In total, American consumers were $ 14.96 trillion in debt at the end of June, the largest accumulation of bills on record and $ 812 billion more than was owed at the end of 2019, before the pandemic.

  • Homeowners in the U.S. have another chance to refinance amid falling mortgage rates

Credit card balances increased by $ 17 billion in the second quarter, but are still $ 140 billion below end-2019 levels. Auto loan balances increased by $ 33 billion.

Rent prices in the US hit record highs 0:55

Mortgage Debt and Pandemic-Era Protections

Mortgage debt, the largest contributor to overall household debt, increased by $ 282 billion to $ 10.44 trillion.

Most of 44% of outstanding balances originated in the past year, both for new mortgages and refinances.

But even though the US housing market is red hot and home loans are through the roof, "there are still 2 million borrowers in mortgage carry-over who are vulnerable to financial distress once the programs are over. leniency may come to an end, "said Joelle Scally, manager of the New York Fed Microeconomic Data Center.

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When the programs were first implemented, the mix of people benefiting from the mortgage default protections was diverse in terms of credit scores.

But over time, borrowers with the highest credit scores dropped out of the programs, leaving only the most financially vulnerable.

Will US home prices continue to rise?

1:02

What will happen when pandemic-era protections expire?

That is perhaps the biggest public policy issue in the recovery.

Federal programs, as well as lender initiatives, kept loan delinquencies in check as the number of mortgages that defaulted hit a record low in the second quarter.

Meanwhile, student loans, the only debt category that declined in the last quarter, dropping to $ 14 billion, remain mostly covered by extension programs under the CARES Act.

Debts Housing

Source: cnnespanol

All news articles on 2021-08-03

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