Americans Have Never Been in So Much Debt

American households are carrying record amounts of debt as home and auto prices rise, COVID infections continue to fall and people get out their credit cards again. Between July and September, U.S. household debt climbed to a new record of $15.24 trillion, the Federal Reserve Bank of New York said. It was an increase of 1.9%, or $286 billion, from the second quarter of the year. ”

Now that the stimulus sugar rush has worn off, consumers are going back to their old ways of spending with their credit cards. Credit card balances rose by $17 billion, just as they had during the second quarter. Mortgages, which are the largest component of household debt, rose by $230 billion last quarter and totaled $10.67 trillion. Auto loans and student loan balances also increased, rising by $28 billion and $14 billion, respectively. Even though credit card debt has yet to get back to its pre-pandemic level, total debt is already $1.1 trillion higher than at the end of 2019.

Struggling with debt? Call us at 816-524-4949 or visit our website to schedule a consultation to determine your best option.

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