Americans continue to increase their debts – in mortgages, car loans and credit card purchases.
According to the report published by the Fed branch in New York, the debt of US households in the fourth quarter stood at a new record of $16.9 trillion – an increase of 2.4% (or $394 million) compared to the third quarter.
The amount of consumer credit taken by Americans (car loans, credit cards) was 986 billion dollars in the fourth quarter, an increase of 6% compared to the third quarter. This is the sharpest rate of increase since the bank in New York began tracking the data in 1999.
Along with these record levels, and no less worrying – there is also an increase in the number of Americans who have not met the payment of debt they have taken on, in all sectors of activity. Although this is a relatively low rate compared to the one recorded in the period before the epidemic – the rate of loans in which payment was not made is 2.5%, compared to 4.7% at the end of 2019.
“Although historically, a low unemployment rate has kept the financial situation of American consumers in good shape, high prices and climbing interest rates may test the ability of borrowers to meet their debt payments,” the report said.