data shows that U.S. credit card debt has increased amid a strong economy, and overdue debt has increased


Total U.S. household debt levels rose in the third quarter of 2023, driven by a strong economy and a sharp increase in credit card lending. However, there are growing signs that some borrowers are struggling to manage their debt, according to a report released by the New York Federal Reserve Bank.

The report noted that overall debt levels increased by 1.3% in the third quarter to $17.29 trillion. Credit card borrowings increased significantly by 4.7%, reaching $1.08 trillion. Credit card balances increased by $154 billion over the past year, the largest increase since the New York Fed began tracking the data in 1999.

New York Fed economist Donghoon Lee said the sharp increase in credit card balances in the third quarter was consistent with strong consumer spending and real GDP growth. The U.S. economy grew rapidly in the third quarter, with an increase of 4.9%, which was above the trend.

Despite a strong economy, soaring borrowing costs have slowed the housing market and pushed mortgage rates to their highest levels in decades. That raises concerns about Americans’ ability to manage debt, especially as the high levels of savings accumulated during the pandemic begin to decline. Reports show that credit problems are increasing, albeit at lower levels.

The ratio of delinquent debt to total debt increased by 3% through September, up from 2.6% in the second quarter. Total delinquent debt was 1.28% in the third quarter, compared with 0.94% in the same period last year. The report noted that the increase in credit card delinquency rates was most pronounced among borrowers in their thirties.

“The continued rise in credit card delinquency rates has broad implications across incomes and regions, but is particularly pronounced among millennials and people with auto loans or student loans,” the economist noted.

JP Morgan (NYSE: JP Morgan) economist Daniel Silver commented that rising credit problems appear to be consistent with the trajectory of shrinking consumer spending, but are not an exception. .

The New York Fed report also showed that student loan debt increased by $30 billion in the third quarter to $1.6 trillion. The data comes after student loan payments resumed, which were paused during the pandemic. The resumption of these payments is concerning, but recent research from the New York Fed suggests that only modest economic headwinds are likely.

New mortgage loans originated in the third quarter totaled $386 billion, while overall mortgage loan balances increased by $126 billion to $12.14 trillion as of the end of September. Auto loan balances increased by $13 billion in the third quarter to $1.6 trillion, continuing a growth trend dating back to 2011.

Reuters contributed to this article.

This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.


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