NEW YORK CITY—Household debt, including mortgages, credit cards, auto loans and student loans, rose $78 billion between July and September to $11.7 trillion, according to new data released by the Federal Reserve Bank of New York.
Despite the increase in borrowings that are being reflected in loan-to-share ratios at credit unions across the country, the Federal Reserve Bank noted that outstanding debt still remains $1 trillion below its peak in 2008.
“For the most part, consumers are taking on new loans carefully, yet late payments on one fast-growing category of debt—student loans—are worsening, the Federal Reserve Bank of New York said. “The numbers suggest Americans are gradually borrowing again after years of shedding debt. With cheaper gasoline and easier-to-find jobs, more borrowing could fuel holiday shopping and give more succor to the economy, which depends on consumers for roughly two-thirds of its activity.”
New mortgage loans, including refi’s, rebounded with a $337-billion increase following four straight quarters of declines. Total mortgage balances—the biggest part of Americans' debt—climbed $35 billion to $8.1 trillion.
As credit unions have also witnessed, auto loans were up $105 billion in new loans, the highest level in nearly a decade. Outstanding student loans rose $8 billion to $1.1 trillion.
Credit-card balances have been growing slightly, and are now slightly above one-year-ago levels.
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