U.S. Household Debt Reaches New Record: $14 Trillion

By:
Chris Gaetano
Published Date:
Feb 13, 2020
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U.S. households now hold a total of $14 trillion of debt, a new high, according to CNN. The New York Federal Reserve said that total household debt rose by $193 billion during the last quarter of 2019, to bring the figure $1.5 trillion higher than the previous record, set in 2008, at the height of the global financial crisis. This new high arrives amid an age of historically low interest rates, which have served to make credit extremely cheap. Despite the low rates, delinquencies are actually on the rise: Overall, the flow into serious delinquency, defined as 90 days or more delinquent, rose from 2.27 percent to 2.36 percent, with the biggest source being student loan debt and credit card debt. The number of bankruptcies has also risen, according to the Fed, as 202,000 consumers had a bankruptcy notation added to their credit reports in the fourth quarter of 2019, compared to 195,000 in the fourth quarter of the previous year. 

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