Household Debt Chart: How much do Americans owe?

Written by Posted On Saturday, 15 March 2014 06:08

title insurance,new york,new york city,long island,michael haltman,hallmark abstract serviceFrom Hallmark Abstract Service, New York

Household debt is once again on the rise ($11.52 trillion) and is not that far behind the Q3 2008 peak!

Most Americans are very aware of what they owe to someone else whether it be for a mortgage, a car loan, student loans, credit cards or very possibly for all four categories.

We also receive anecdotal evidence about the direction of indebtedness through some of the government statistics that are released each weak that serve as guideposts for the direction of the US economy.

To narrow it down, however, each year the Federal Reserve Bank of New York releases a chart that provides a breakdown of the amount of household debt outstanding on a nationwide basis and the categories that the debt falls into on a percentage basis.

It will come as little surprise as to what the largest percentage category of debt is, but second-place may surprise and quite possibly concern you. Then again, maybe it won’t.

The second chart below shows, by loan type, the percentage of outstanding debt that is 90+ days delinquent and indicates a sharp rise in student loans making it the ‘winner’ in that category.

Consumer Debt and Bankruptcy Statistics

Housing Debt

• Originations, which we measure as appearances of new mortgage balances on consumer credit reports, dropped again, to $452 billion.
• About 157,000 individuals had a new foreclosure notation added to their credit reports between October 1 and December 31.
• Foreclosures have been on a declining trend since the second quarter of 2009 and are now at the lowest levels seen since the end of 2005.
• Mortgage delinquency rates have seen consistent improvements; 3.9% of mortgage balances were 90+ days delinquent during 2013Q4, compared to 4.3% in the previous quarter.
• Serious delinquency rates on Home Equity Lines of Credit decreased to 3.2%, down from 3.5% in 2013Q3.

Student Loans and Credit Cards

• Outstanding student loan balances reported on credit reports increased to $1.08 trillion (+$53 billion) as of December 31, 2013, representing a $114 billion increase for 2013.
• About 11.5% of student loan balances are 90+ days delinquent or in default.
• Balances on credit cards accounts increased by $11 billion.
• The 90+ day delinquency rate on credit card balances increased slightly to 9.5%.

Auto Loans and Inquiries

• Auto loan originations decreased in the fourth quarter of 2013 to $88 billion.
• The percentage of auto loan debt that is 90+ days delinquent remains unchanged at 3.4%.
• The number of credit inquiries within six months – an indicator of consumer credit demand – remained virtually unchanged from the previous quarter at 169 million.

The charts can be viewed at the 
Hallmark Abstract Service blog here.

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Michael Haltman

Hallmark Abstract Service provides title insurance for both residential and commercial real estate transactions in New York State.

Hallmark Abstract President Michael Haltman is also extremely involved with the combat veterans 501(c)(3) Heroes To Heroes Foundation, serving as the Board Chair.

Hallmark Abstract Service

In 2008 we opened our doors focused on two primary goals:

Number one was to be a title insurance company that would provide clients with a superior finished product that completely protects their interests for what will likely be one of the largest transactions of their lifetime.

Number two was to insure that the experience of working with Hallmark Abstract Service was as easy and seamless as possible for all parties involved in the transaction!

From the number of satisfied clients who come back to Hallmark Abstract Service time after time for their title insurance needs, the evidence bears out that we have accomplished these two goals in the past and will maintain our client centric focus far into the future!

Michael Haltman

Post 1984 MBA in Finance from the State University of New York at Albany that concentrated on the tax-exempt market, Michael became a municipal bond analyst at Shearson/Lehman Brothers tasked with following general obligation issuers on the city and state level as well as housing bonds secured by mortgage pools.

This experience at Shearson/Lehman Brothers followed by stints at PaineWebber and Citigroup provided a broad framework and understanding of the real estate and mortgage markets.

As CEO of Exeter Commercial which underwrote and funded commercial mortgage loans as a correspondent lender, title insurance played a critical role in both the underwriting and closing process.

In 2008 recognizing both an opportunity and need, Hallmark Abstract Service was born.

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