Household Debt Hits Record High $13.29 Trillion Led by Mortgages, Student Loans

A New York Fed report shows household debt hit a new record high of $13.29 trillion in the second quarter.

Inquiring minds are digging into the New York Fed Quarterly Report on Household Debt and Credit.

Total Debt

Mortgage Originations

Auto Loans by Credit Score

Credit Score Ratings:Equifax

"Lenders generally see those with credit scores 670 and up as acceptable or low-risk borrowers. Those with credit scores from 580 to 669 are seen as “subprime borrowers,” meaning they may find it more difficult to qualify for better loan terms. Those with lower scores – under 580 – fall into the “poor” credit range and may have difficulty getting credit or qualifying for better loan terms."

At least 1/3 of the auto loan originations are subprime.

Loan Delinquency Status

Percent of Balance 90+ Days Late

Debt Slaves

The number of debt slaves rises every month.

Party on dudes. Your house, your education, and your stocks will bail you out. Right?

Mike "Mish" Shedlock

Comments (14)
No. 1-6

A quarterly increase of 6/10ths of 1% doesn't seem particularly alarming.


Things have never been better. The economy is doing fantastic because Trump says so. Stocks are going through the roof! The law of gravity has been repealed and it's just up, up, up from here on out! Party on, Wayne!


Question - when the party stops, will those left holding the bag be better able to cope with the losses than last time?

An important question, is the credit system more resilient now than 07-09?


Although the Fed's Z1 Flow of Funds report issued on June7, 2018 shows that total household debt outstanding (mortgage and consumer credit) at the end of the 1st quarter totaled $15.255 trillion, $2 trillion higher!

Can anyone explain the difference?


As a contrarian data point: the compounding rate from 2003 Q2 thru 2018 Q2 is 3.92% Given that many people think that inflation figures reported by the government are understated, the growth in the overall debt over the past 15 years simply seems to be following inflation with some shift out of credit cards and mortgages and into student loans. In fact, going back to 1999 data gives a compounded growth rate of 5.55% so the overal rate of growth has slipped from the 99-03 time frame.