US household debt ticks up to new all-time high as inflation continues to rise
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Key Points:
- U.S. household debt reached a record $18.8 trillion in Q1 2024, driven mainly by increases in mortgage and auto loan balances, according to the Federal Reserve Bank of New York.
- Mortgage debt stands at $13.2 trillion, while auto loan debt is at $1.69 trillion, reflecting significant contributions to the overall debt rise.
- Student loan debt slightly decreased to $1.66 trillion, but over 10% of these loans are past due, approaching pre-pandemic delinquency levels.
- Credit card debt fell by $25 billion in the first quarter to $1.25 trillion, though it has increased by $70 billion over the past year.
- Despite the record household debt amid rising inflation, the New York Fed describes Americans' overall credit as stable but highlights vulnerabilities among younger and lower-income borrowers.