Please consider New York Fed Household debt and credit report for the second quarter of 2022.
- Total household debt increased by $312 billion, or 2%, in the second quarter of 2022 to $16.15 billion, according to the latest quarterly household debt and credit report.
- Mortgage balances – the largest component of household debt – soared by $207 billion and stood at $11.39 trillion as of June 30.
- Credit card balances have increased by $46 billion since the first quarter. The 13% year-over-year increase was the largest in more than 20 years.
- Global limits on cards marked their biggest increase in more than a decade.
- Transitions to delinquency accelerated but remained very low compared to historical levels.
- Auto loan balances rose $33 billion in the second quarter, continuing the upward trajectory in place since 2011.
- The student loan balance now stands at $1.59 trillion, roughly unchanged from the first quarter of 2022.
- Other balances, which include retail cards and other consumer loans, increased by $25 billion.
- In total, non-housing balances rose $103 billion, a 2.4% increase from the previous quarter, the largest increase seen since 2016.
Spending Questions and Answers
Q: Why did we have two quarters of negative GDP with all this spending?
A: Inflation-adjusted spending that fuels GDP does not keep up with inflation.
It appears that the alleged pandemic savings have all been spent as consumers increasingly turn to their credit cards.
Either way, the debt just keeps piling up.
Total debt balance and its compensation
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Hooray, total debt has hit a new high.
The overall household debt balance increased by $312 billion in the second quarter of 2022, up 2.0% from the first quarter of 2022.
Balances now stand at $16.15 trillion and have increased by $2 trillion since the end of 2019, just before the pandemic recession.
This post is from MishTalk.Com.
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