The Federal Reserve Bank of New York has disclosed that between July and September this year, American household debts climbed to a new record of $15.24 trillion, an increase of 1.9% from the second quarter of the year.
As pandemic relief efforts wind down, American households are carrying record amounts of debt and consumers are going back to their old ways of spending with their credit cards. This has led to a rise in credit card balance by $17billion.
Mortgages which are the largest component of household debt rose by $230 billion last quarter bringing to a total of $10.67 trillion.
Auto loans and student loan balances also increased by $28 billion and $14 billion respectively.
