Cars, Credit Cards Boost U.S. Household Debt in Second Quarter
- NY Fed: Student loan debt declines for first time on record
- Total auto loan debt outstanding reaches new all-time high
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Increased U.S. household borrowing to finance vehicles and credit-card purchases offset declines in the amounts of mortgage and student loan debt outstanding to propel total consumer debt slightly higher in the second quarter, according to a report from the Federal Reserve Bank of New York.
The report, released on Tuesday, showed that $427 billion of new mortgages were originated in the three months to end-June, roughly in line with the average over the last two years. Total student loan debt declined $2 billion to $1.26 trillion over the same period, recording the first drop on record in data going back to 2003.