Tuesday, August 23, 2016

Credit Card Balances Influence Increase in Household Debt

The Federal Reserve Bank of New York’s latest Household Debt and Credit report shows credit card debt is increasing while overall credit card use and delinquency rates decline. Household debt increased in the second quarter 2016, primarily due to a rise in auto loan and credit card debt as of June 30. Overall household debt increased by $35 billion to $12.29 trillion in the second quarter. Total household debt remains at 3.1 percent below its peak of $12.68 trillion in third quarter 2008, but it is 10.2 percent above reports from second quarter 2013.

Credit card debt increased $17 billion to $729 billion; however it is still lagging behind the high of $866 billion reached in the fourth quarter of 2008, according to a blog post by the Fed accompanying the report. While credit card balances increased, credit card delinquency rates improved to 7.2 percent in the second quarter compared to 7.6 percent in the first quarter. More info here: http://nyfed.org/2bjo8tl

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