The amount of money owed to financial institutions is considered household debt. This can include various forms of consumer debt such as student loans, auto loans and credit card debt, as well as mortgage loans. According to the latest household debt report, released by Federal Reserve Bank of New York, balances from mortgages have increased in the fourth quarter of 2014.
The Federal Reserve Bank of New York’s report clearly shows the growing trend in borrowing and indebtedness. Also according to the report, outstanding household debt increased by $117 billion, from the third quarter of 2014. This one percent increase has placed total household indebtedness at a staggering $11.83 trillion as of Dec. 31, 2014.
Compared to the fourth quarter of 2013, total debt has gone up $326 billion. The Federal Reserve Bank of New York’s report has been based on data collected from New York Fed’s Consumer Credit Panel, with a nationally representative sample drawn from anonymized Equifax credit data. Mortgage debt appeared to have the highest increase by $39 billion, while student loans followed closely behind with an increase by $31 billion.
Additionally, we saw an increase in auto loan debt by $21 billion and credit card debt by $20 billion. Outstanding student loan debt reached $1.16 trillion. Overall, delinquency rates for 2014’s fourth quarter remained unchanged at 4.3 percent. However, auto loans and student loan rates grew worse.
Donghoon Lee, research officer at the Federal Reserve Bank of New York stated, “Although we’ve seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student loan balances and delinquencies is concerning. Student loan delinquencies and repayment problems appear to be reducing borrowers’ ability to form their own households.”
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Source: http://www.acainternational.org/creditors-household-debt-continues-upward-climb-35086.aspx