Greatest increase in two decades hits record.
A new report from the Federal Reserve reveals that U.S. household debt has risen to a record $16.9 trillion in the final quarter of 2022. The borrowing represents the largest quarterly increase in 20 years.
The Quarterly Report on Household Debt and Credit was recently released by the Federal Reserve Bank in New York. Their report shows that new debt was largely driven by an increase in mortgage balances.
Credit card balances experienced a $61 billion increase in the fourth quarter—the largest rise in the history of data collection that goes back to 1999. Credit card balances increased by a record $130 billion in all of 2022.
A year ago, 39 percent of holders of credit cards carried debt. That figure is now 46 percent. Delinquency rates are also up.
As the Lord Leads, Pray with Us…
- For Chairman Powell and members of the Federal Reserve as they evaluate the rate of inflation.
- For American families as they seek to cover expenses as inflation and interest rates rise.
Sources: The Epoch Times, Wall Street Journal
