U.S. Sees a Rise in Consumer Debt

U.S. Sees a Rise in Consumer Debt

By: Tomas Ronolski - AllPennyStocks.com News

Friday, May 13, 2022

U.S. consumer debt showed a rapid rise in the first quarter, up 1.7 percent—$1.7 trillion higher than at the start of the pandemic, due mainly to mortgage and auto loan balances.

The Household Debt and Credit report is released quarterly by the Federal Reserve, Bank of New York’s Center for Microeconomic Data.The national data provides a unique snapshot  into activity and credit conditions of U.S. consumers.  

The increase in debt was mostly due to mortgage and auto loan balances—mortgage balances rose $250 billion, while credit card balances declined from Q4, although they are $71 billion higher than in Q1 2021. Student loan debt grew $14 billion from Q4, with approximately 5% of aggregate debt over 90 days late.

Reflecting a higher rate environment, mortgage and auto loan originations declined from historically high volumes in 2021.

With official rates already 75 basis points higher than the beginning of the year, and given the Fed’s plan to continue to raise rates until the end of 2023 (at a minimum), this debt is expected to continue to grow.

Copyright © 2022 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Other Penny Stock Movers

Improving Air Safety and Disrupting the Air Treatment Industry
Walking the Walk, This Penny Stock Crushing It In 2022
Leading Cannabis Accessory Distributor Announces Q3 Results and Rapid Expansion into California
Most Popular
FREE Newsletter
AllPennyStocks.com Favorites

Back to Top