Total household debt in the United States hit $17.05 trillion in the first quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York. This represents an increase of $148 billion, or 0.9 percent, from the fourth quarter of 2022.
The increase in household debt was driven by growth in mortgage, auto loan, and student loan balances. Mortgage balances increased by $105 billion in the first quarter, auto loan balances increased by $25 billion, and student loan balances increased by $18 billion. Credit card balances were flat.
At least publicly, the rise in household debt concerns policymakers, as it could lead to a financial crisis if not managed carefully. The Federal Reserve says they are closely monitoring the situation and have taken steps to increase financial system regulation.
Key Points
- Total household debt increased by $148 billion, or 0.9 percent, in the first quarter of 2023.
- Mortgage, auto loan, and student loan balances increased, but credit card balances were flat.
- The rise in household debt concerns policymakers, as it could lead to a financial crisis if not managed carefully.
- The Federal Reserve says they're closely monitoring the situation and have taken steps to increase financial system regulation.
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