It’s time to party like it’s 2007?
According to a new Federal Reserve Bank of New York (FRBNY) study, household debt has risen the most in 12 years, climbing by $601 billion in 2010. In total, household debt has exceeded $14 trillion for the first time in the nation’s history.
The surge was led by greater mortgage debt balances ($433 billion), the largest jump since 2007. Auto loans and credit cards each spiked $57 billion last year.
But there was an interesting tidbit of information: The level of household debt service as a percentage of disposable personal income is at a record low dating back to 1980.
Still, the delinquency rate among credit card borrowers, especially young people, has been steadily increasing since 2016.
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