NY Federal Reserve Bank reports U.S. household debt exceeds $14 trillion


In February 2020, the Federal Reserve Bank of New York announced that U.S. household debt surpassed $14 trillion for the first time in American history. As of the end of 2019, national consumer debt is approximately $1.5 trillion higher than the previous high mark which was set in 2008. The Federal Reserve Bank’s quarterly household credit and debt report indicated that Americans have increased their rates of borrowing for 22 consecutive quarters. According to the Federal Reserve, total household debt balances rose $601 billion in 2019. Roughly $667 billion of the overall national debt is delinquent, including $424 billion that is seriously delinquent – meaning the debt is at least 90 days late.

Americans have the majority of their debt contained within 4 sectors: automotive, credit cards, housing, and student loans. Mortgage borrowing totaled $9.56 trillion, up $120 billion from the previous year.  Mortgage loans for young adults are at the highest level since 2007.

The report indicates that student loan debt increased to $1.51 trillion, up from $1.46 trillion at the end of 2018. Roughly 1 in 9 student loan borrowers were more than 90 days delinquent or in default in 2019. More than $100 billion in student loans are currently held by people over the age of 60.

Automotive debt has reached $1.33 trillion. Approximately 5% of auto loans are more than 90 days delinquent. Credit card debt has reached a record $930 billion.

Sources:

“U.S. Household debt exceeds $14 trillion for the first time,” by Alexandre Tanzi. February 11, 2020. https://www.bloomberg.com/news/articles/2020-02-11/u-s-household-debt-exceeds-14-trillion-for-the-first-time

“U.S. household debt tops $14 trillion and reaches new record,” by Jonnelle Marte. February 11, 2020. https://www.reuters.com/article/us-usa-fed-household-debt/u-s-household-debt-tops-14-trillion-and-reaches-new-record-idUSKBN20521Z#:~:text=(Reuters)%20%2D%20American%20households%20added,New%20York%20said%20on%20Tuesday.

“Americans now have a record $14 trillion in debt,” by Matt Egan. November 13, 2019. https://www.cnn.com/2020/02/12/economy/us-household-debt-record/index.html

Comments

Post a Comment

Popular posts from this blog

Recovery Month supports addiction treatment programs and services

F or twenty-three years Americans have celebrated the month of September as National Alcohol and Drug Addiction Recovery Month.   The purpose of Recovery month is to educate Americans about mental health services and addiction treatment programs that can help people struggling with substance abuse.   Recovery month also raises awareness about specific challenges that people in recovery face.   Although drug and alcohol addictions are complex problems with the correct treatment and support people who struggle with these addictions can recover. In a Presidential Proclamation On August 31, 2012, President Barack Obama declared September 2012 as National Alcohol and Drug Addiction Recovery Month.   In his proclamation Obama said: “Over the past 3 years, we have worked to strengthen substance abuse prevention and treatment programs, and to support Americans in recovery… Drug and alcohol abuse continue to take a tragic toll on millions of lives across our country. ...
Read more

The Life and Art of Allan Rohan Crite

Image
The Boston Public Library was one of three locations in the city of Boston to display the art work of longtime Bostonian and artist Allan Rohan Crite. Beginning in the fall of 2007 until February 3, 2008, the BPL, the Boston Athenaeum, and the Museum of the National Center of Afro-American Artists exhibited collected works of art from Crite’s storied career in The Life and Art of Allan Rohan Crite: 1910-2007 . Funded in part by the Boston Public Library Foundation, the exhibit offered onlookers a view into Crite’s lengthy artistic career. When I visited the exhibit on January 19, 2008, over fifty collages, drawings, paintings, and sketches adorned the Wiggins Gallery in the McKim Building of The Boston Public Library. Crite was born on March 20, 1910, in Plainfield, New Jersey. In that same year, his family moved to Boston, Massachusetts. Crite would later make Boston his home as an adult. Over the course of his distinguished career he promoted visual art as a lecturer, p...
Read more

Political legislation brings attention to US Dental Care Crisis

A ccording to a report created by U.S. Senator Bernie Sanders (I-Vt.) and U.S. Representative Elijah E. Cummings (D-Md.) there is a national crisis in American dental care.   On June 7, 2012 Cummings and Sanders – the chairman of the Senate Subcommittee on Primary Health and Aging, introduced legislation to address the inefficiencies in the American dental care system.   Approximately 130 million Americans do not have dental insurance.   ¼ of American adults 65 and older have lost all of their teeth.   More than 75% of American adults over 30 have gum disease.   Additionally, about 17 million low-income children do not go to the dentist every year. On June 26, 2012, PBS aired a documentary about the U.S. dental care system on the investigative news program FRONTLINE .   The 50 minute documentary, Dollars and Dentists , analyzes current economic trends and patient access in the dental care industry.   The documentary is a joint investigative pie...
Read more