U.S. household debt grew by $147 billion, or 0.8%, in Q3 2024, reaching a new peak of $17.94 trillion, according to the New York Fed’s quarterly report.
- Mortgage debt, the largest chunk, rose by $75 billion, with an additional $7 billion added by home equity lines of credit (HELOCs).
- Credit card balances increased by $24 billion, student loans by $21 billion, and auto loans by $18 billion.
Delinquencies: Aggregate delinquency rates increased, with 3.5% of total debt in some stage of delinquency. However, credit card delinquencies showed slight improvement, with 8.8% of balances transitioning to delinquency, down from 9.1% last quarter.
What They’re Saying: While household debt continues to climb, income growth has outpaced debt accumulation, according to Donghoon Lee, Economic Research Advisor at the New York Fed. “Still, elevated delinquency rates reveal stress for many households, even amid some moderation in delinquency trends this quarter,” he noted.
The Bottom Line: Despite rising debt, the majority — 68% — is tied to assets, with mortgages leading the way. But the growing delinquency rates signal that many households are feeling the pinch, especially as rates of delinquency remain high for certain types of debt, like credit cards.
