U.S. household debt surpasses 2008 levels: NY Fed

Household Debt Tops 2008 Peak

Kristian Rouz - US student loans, having boomed in the past 8 years, surged to their all-time highest at an aggregated $1.3 trln, representing roughly 11 percent of total outstanding household debt in the US, with over 7 mln borrowers unable to serve their obligations. Ford said Wednesday it's cutting 1,400 jobs in North America and Asia to improve profits as the USA auto industry recorded a fourth straight drop in monthly sales in April, after eking out a record year in 2016.

Just 203,000 Americans declared bankruptcy in the first three months of this year, the lowest in the 18 years that the New York Fed has tracked the data.

Even with debt levels back to record heights, analysts note that household borrowing appears more sustainable now than it did almost a decade ago.

Outstanding household debt increased by a 1.2 percent in the first quarter, rising by $149 billion to a new record level of $12.73 trillion, the Federal Reserve Bank of NY said yesterday.

Higher debt levels can be a positive indicator for the economy. Automotive loans rose 0.9% and student loans climbed 2.6%. Credit card balances are also lower than nine years ago, the Fed said.

Gas Tax Bill Heats Up in Baton Rouge Today
Pylant says he had only co-sponsored the bill by his New Iberia colleague so he could get his frustrations heard. Video of the protest captured demonstrators shouting "Russia is our friend", and "You will not replace us".

In the first quarter, student loans accounted for 10.6 percent of household debt, more than double the 2008 figure.

Additionally, other types of debt saw similar increases in Q1 2017, notably student loan debt, which grew by $34 billion in Q1, totaling $1.34 trillion. As of the first quarter, 67.8% of total household debt was in the form of mortgages; in the third quarter of 2008, mortgages were 73.3% of total debt.

Mortgage lending to subprime borrowers has dwindled since the housing crisis in favor of loans to consumers considered more likely to repay. This is a $149 billion quarterly increase. Now, given the increased rates of overall household indebtedness, with monthly auto loan payments and mortgage or rent, as well as credit cards, the optimistic developments in the labour market do not seem to help.

Student loans are also a potential trouble spot: They topped $1.3 trillion in the first quarter, soaring by 120 percent since 2008. Some 19.6% of auto-loan originations last quarter went to borrowers with credit scores below 620, down from 29.6% a decade earlier.

Auto loan balances continued their steady rise seen since 2011 while auto loan originations declined and median credit scores of borrowers for these new loans increased. Foreclosure rates remain low by historical standards, according to the data, but 91,000 individuals had a foreclosure notation added to their credit reports while mortgage delinquencies worsened, though transition rates (which measure balances that have newly become at least 30-days late divided by balances current in the previous quarter) were unchanged.

Related News:

  • Online abortion services 'alternative to unsafe methods'

    Online abortion services 'alternative to unsafe methods'

    In the last few years, women have been prosecuted for doing their own abortions at home through online telemedicine. Less than one per cent said they needed a blood transfusion after, and three per cent needed antibiotics.
    Turkey blocks German lawmaker visit to soldiers at air base

    Turkey blocks German lawmaker visit to soldiers at air base

    Last year's German parliamentary vote to label as genocide the 1915 killing of Armenians by Ottoman Turks also soured the mood. After the vote, a furious Erdogan accused German lawmakers of Turkish origin of having "tainted blood".
    Japan monarchy: Princess Mako to lose royal status by marrying commoner

    Japan monarchy: Princess Mako to lose royal status by marrying commoner

    The news is sure to spark fresh debate in Japan about the rules of succession as at present, only men can inherit the throne. The law does not apply to male royals, with Akihito and both his sons marrying commoners, who are now part of the monarchy.
  • Nearly 1 million tune in to watch Derek Jeter's speech

    Nearly 1 million tune in to watch Derek Jeter's speech

    On the night the New York Yankees retired his iconic No. 2 jersey, Derek Jeter was asked about his bid to buy the Miami Marlins. Both teams wore special Mother's Day uniforms, undershirts and caps with pink elements, and many players used pink bats.
    Roger Federer smart to target quicker surfaces, says Novak Djokovic

    Roger Federer smart to target quicker surfaces, says Novak Djokovic

    The third seed surged into a 3-0 lead early in the match before his compatriot suffered what looked to be a nasty knee injury. He defeated Djokovic in the semifinals in Madrid, snapping a seven-match winless streak against the second-ranked Serb.
    Head in the clouds: Dutch king was guest pilot for 21 years

    Head in the clouds: Dutch king was guest pilot for 21 years

    And even when he makes announcements to passengers, Willem-Alexander says that as a co-pilot he doesn't have to give his name. Passengers, however, will continue to have no idea that there is a member of the royal family in the cockpit.
  • Manchester United set to add £25 million defender to squad [Mail]

    Manchester United set to add £25 million defender to squad [Mail]

    Even his return to Stamford Bridge in 2013 saw Mourinho possess a more reserved personality, and he called himself "the Happy One" when first introduced to the media.

    Lieberman Among the 4 Candidates Trump Will Interview for FBI Post

    Lieberman previously served as a senator from CT and was Al Gore's running mate in the 2000 presidential election. Prior to Keating's two terms as governor of Oklahoma, 1995 to 2003, he was an F-B-I agent.
    New Orleans Uproots Third Confederate Statue In Early Morning Operation

    New Orleans Uproots Third Confederate Statue In Early Morning Operation

    The monuments, which were erected between 1884 and 1915, are seen by many residents as symbols of white supremacy and racism. The removal comes after the city had already taken down a statue of the confederacy's only president and one other memorial.
  • Trudeau congratulates France's president-elect Macron on decisive win

    Trudeau congratulates France's president-elect Macron on decisive win

    That lack of support presaged a hard road ahead as Macron tries to build a legislative majority to push through his program. Marine Le Pen claimed over 11 million votes and has wiped out the Socialists and the Republicans.
    Rescued Chibok girl not one of 219 abducted schoolgirls - FG

    Rescued Chibok girl not one of 219 abducted schoolgirls - FG

    Nigeria's leading prelate welcomed the release of 82 girls abducted from their school in Chibok, Nigeria, in 2014. This follows the original October release of 21 of the Chibok girls.

    Top US senator John McCain calls for removal of Turkey's US ambassador

    The State Department said they were communicating their concern to the Turkish government in the "strongest possible terms". Get great content delivered straight to your inbox every morning Monday-Friday at 8:00am, just a click away, Sign Up Now.


Most liked

Darren Lehmann says Ashes strike won't happen
I'm literally talking to both players and CA. "The ACA clearly wants to resolve a new MOU before June 30, and given the differences in both parties, mediation seems the right step".

1 dead, 2 hurt in serious crash in Anne Arundel Co
Laura Ashley Murphy, 22, of Salisbury, was the driver of the black 2017 Volkswagen Tiguan involved in the crash. Authorities received numerous 911 calls about a vehicle driving the wrong way, and then, about a crash.

Belief in Wenger on the line in race for Champions League spot
But when asked whether he was concerned by the visible empty seats, Wenger said: "No, it's Tuesday night against Sunderland. The ESPN FC crew answer your tweets about the success of Manchester United's season, Alexis Sanchez's future and much more.

Trump Campaign Had 18 Secret Contacts With Russia
However, in January 2017, the White House denied there were any contacts with Russian officials during the 2016 campaign. In a written statement, Trump insisted anew there were no nefarious ties between his campaign and Russian Federation.

Iran's top leader urges high turnout in presidential vote
If no candidate gains at least 50 percent of the vote, a runoff election between two top candidates will take place on May 26. It is not just because of the past of the main challenger left in the race, Ebrahim Raisi , although that is ghastly enough.

Texas lands top prep recruit Mohamed Bamba
He plans to go to Texas' School of Business. "We instantly formed a bond". "He's as unique a person and player as I've been around".

Madrid Open: Rafael Nadal lifts title to match Novak Djokovic's record
Madrid's home bird opened a 4-2 cushion early in the tiebreak before a three-point spree from Thiem drew him into a slim 6-5 lead. The 2017 Monte Carlo Masters was his first title victory since April 2016 when he beat Kei Nishikori in the finals at Barcelona.

US Senator Mazie Hirono to Undergo Kidney Cancer Treatment
Honolulu, Hawaii - House Speaker Scott Saiki released the following statement after hearing that U.S. She got her start in politics in the Hawaii House and as the state's lieutenant governor.

Chelsea's Premier League title triumph in numbers
Antonio Conte has posted to Facebook for the first time in nearly a year after leading Chelsea to the Premier League title.

Price Target Analysis Rite Aid Corporation (RAD)
It represents a security's price that, if achieved, results in a trader recognizing the best possible outcome for his investment. This change led market cap to move at $4.30B, putting the price -54.28% below the 52-week high and 8.38% above the 52-week low.

Jose Mourinho: Sergio Romero will start Europa League final
Especially because he played two Europa League matches, so if we win, he wins the trophy. When people say we gambled - we didn't gamble .

Featured Stock Overview: Ford Motor Co
The auto manufacturer reported $0.39 earnings per share for the quarter, topping the Zacks' consensus estimate of $0.34 by $0.05. In terms of Buy, Sell or Hold recommendations, General Motors Company (NYSE:GM) has analysts' mean recommendation of 2.6.

BMO Capital Markets Reiterates Market Perform Rating for QUALCOMM, Inc. (QCOM)
The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink . The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks, or any time period the trader chooses.

Trump Administration Announces Intent To Renegotiate NAFTA
A trade team from Mexico is in Nebraska this week to meet with Governor Pete Ricketts, corn industry officials and U.S. However, U.S. agriculture generally has benefited from NAFTA, and ag groups have urged Trump not to pull out of it.

Overwatch: Anniversary event, GOTY edition and free weekend all confirmed
The upcoming Overwatch Anniversary event that's scheduled to take place between May 23 and June 12 is starting to take form. Vintage Blackwatch Reyes, Strike-Commander Morrison, Overgrown Bastion, Security Chief Phara, and Slipstream Tracer skins.