Household debt jumps the most in 12 years, Fed report says
Household debt surged by more than $600 billion in 2019, marking the biggest annual increase since just before the financial crisis, according to the New York Federal Reserve.
Total household debt balances rose by $601 billion last year, topping $14 trillion for the first time, according to a new report by the Fed branch. The last time the growth was that large was 2007, when household debt rose by just over $1 trillion.
Fed economists said on the Liberty Street Economics blog that the growth was driven mainly by a large increase in mortgage debt balances, which increased $433 billion and was also the largest gain since 2007.
Housing debt now accounts for $9.95 trillion of the total balance. Balances for auto loans and credit cards both increased by $57 billion for the year, according to the Fed.
https://www.msn.com/en-us/money/markets/household-debt-jumps-the-most-in-12-years-fed-report-says/ar-BBZTmmx?li=BBnbfcN
