Consumers more confident about taking on debt

February 15, 2020

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.

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