Inflation is forcing many US households into debt to cope with its effects. Overall, the total debt of Americans increased by 2% between the first and second quarters of the year, until the $16.15 trillionwhile the credit card deficit grew by 5,5%. So far this year, that debt has increased by 13%what it means the biggest increase in the last 20 years.
If the current escalation in prices continues and the economic recession that the country is approaching materializes, American households may have serious problems in paying your debt. Especially considering that the US Federal Reserve (Fed) could raise the cost of borrowing – currently between 2.25 and 2.5% – another 75 points at the end of September.
The increase in US household debt comes mainly from mortgage loans, student loans, car loans and credit card payments. Between April and June 2022, American households charged $46 billion more on your credit cards than in the previous three months. In addition, the limits of the accounts associated with said means of payment increased in $100 billion up to 4.22 trillion, the biggest increase in more than a decade.
As for the mortgages, they were signed $758 billion and the volume of new loans was $199 billion. On the other hand, student loans were practically unchanged from the first quarter, standing at $1.59 trillionaccording to the New York Fed report presented this week.
As regards delinquency rates, the amount of credit card debt with a delay of 90 days increased in one year by 0.31%, to the 3,35%. On the other hand, the delays in the payment of car loans went from 1,61% al 1,81%.
Although, in general, delinquency rates have increased “modestly for all types of debt” -among high-risk and low-income borrowers are close to pre-pandemic levels-, the entity maintains that this amount remains “historically low”.
Twitter
Linkedin
–
–
