Understanding the Surge in Household Debt with Andrew Arons

November 13, 2023

Andrew Arons and I discuss the impact ofthe Federal Reserve Bank of New York’s latest findings on household debt for Q3 2023. Let’s take a deep dive into what this means for us. If you’re following the economy, managing debt, or just curious about the nation’s financial health, this interview is crucial viewing.

 Report Highlights:

  • Total Household Debt: Skyrocketed to a staggering $17.29 trillion

  • Mortgage Debt: Climbed by $126 billion, reaching $12.14 trillion

  • Credit Card Debt: Jumped $48 billion, a 4.7% quarterly increase

  • Student Loan Debt: Grew by $30 billion, now at $1.6 trillion

  • Auto Loan Debt: Continues its upward trend, now at $1.6 trillion

 Delinquency Warnings: A worrying rise in delinquency rates for most debt types, with significant upticks in credit card repayment issues, especially among 30 to 39-year-olds.

 Mortgages and Housing Debt: New mortgage originations dipped to $386 billion, yet the number of foreclosures remains low post-CARES Act.

 Student Loans: Despite an increase, delinquencies are low due to current reporting policies, but this is an area to watch in the coming quarters.

 Auto Loans: A sector that has seen persistent growth, with delinquencies on the rise – a sign to approach new auto loans cautiously.

 Key Takeaways:

  • Debt continues to rise across the board with varying delinquency rates.

  • Real estate and consumer spending are driving forces behind the debt surge.

  • Credit health is wavering, particularly among specific age groups and debt types.

 Detailed Breakdown: We’ve got all the numbers laid out in an easy-to-understand format, showcasing quarterly and annual changes across different types of debt.

 What’s Next? We’re tackling the implications of these numbers and what they could mean for the economy, your personal finances, and the lending landscape.

Sign up (on the right side) for the free weekly newsletter.