Americans are feeling better about taking on more debt, leading to a rise in loans, credit cards and delinquencies.
U.S. household debt topped $14 trillion in the fourth quarter of last year, an increase of $193 billion from the previous quarter, the Federal Reserve Bank of New York announced Tuesday, Feb. 11. Credit card debt rose $46 billion, student loan debt increase by $10 billion, and mortgage debt surged by $120 billion.
Americans’ confidence may stem from their record high credit scores, with an average of 703, and a low interest rate environment.
Delinquency rates among consumers have also risen. Approximately 2.36% of loans were more than 90 days delinquent in the fourth quarter of last year, increased from 2.27% in the previous quarter.