US household debt levels rose modestly in the final quarter of 2024, driven by a healthy consumer sector, despite turbulence in automobile borrowing. The Federal Reserve Bank of New York reported that total household debt reached $18.04 trillion, up $3.9 trillion since 2019.
Credit card balances increased to $1.21 trillion, while mortgage balances rose to $12.61 trillion. However, auto loan balances also saw an increase to $1.66 trillion. The report found that 3.6% of debt was in some form of trouble, with a slight uptick in delinquency rates for auto loans and credit cards.
New York Fed economists noted that the decline in automobile prices may benefit more recently originated auto loans as they age. Meanwhile, bankruptcy and consumer collections were relatively stable, with 123,000 consumers having a bankruptcy notation added to their credit record, down from the previous quarter.
Source: https://finance.yahoo.com/news/ny-fed-finds-rising-consumer-160750487.html