Household Debt at New Record Is Squeezing Low-Income Americans
- Mortgages increased to an all-time high of $12.6 trillion
- Outstanding debt in some stage of delinquincy rose to 3.5%
Credit-card balances increased by $24 billion to $1.17 trillion as a record 600 million accounts are now open.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
US household debt climbed to a fresh high last quarter, with rising incomes leaving many consumers able to manage the burden, but lower-income groups showing signs of financial strain.
Higher debt levels for mortgages, auto loans, credit cards and student loans last quarter drove overall consumer debt to a new record of $17.9 trillion, according to the Federal Reserve Bank of New York. Households in the aggregate saw incomes rise more than their debt, but younger consumers and lower earners faced more strain, Fed researchers said.