U.S. household debt hit a record high in the first quarter of the year
From January to March the historical debt figure reached $18.8 trillion dollars, according to a report from the FED of New York
This Tuesday, the Federal Reserve Bank of New York reported in its recent report that American household debt reached an all-time high in prime r quarter of this year, in the amid of strong economic pressure and uncertainty after a high inflation that doesn't give and continues to weigh on consumers' pockets.
According to the FED analysis, the historical debt figure reached $18.8 trillion dollars so far from January to March, in which s They include high mortgage costs, accumulated debts on credit cards, along with student and car loans.
Although analysts from the FED in New York rated the general credit of Americans as “stable”, they expressed that certain economic weaknesses are observed among lower income households and younger households.
The report disclosed that the largest balances due came from mortgages and auto loans, which amounted to $13.2 trillion and $1.69 trillion dollars respectively.
While credit card debt showed a decrease of $25,000 million with outstanding balances of $1.25 trillion dollars, the same for student debts decreased slightly $1.66 trillion dollars, but according to the FED report, many borrowers are delayed in their payments.
Which are the cities that are paying the most household debts?
Before the New York FED report, WalletHub published an analysis rating the cities in the United States that are paying off the most debt, they point out “in the first quarter of this year there was a $339 billion decrease to inflation in US household debt.”
The decrease was seen in the 182 cities that were used for the analysis, observing that the debt varies significantly between one entity and another. According to the WalletHub report, where there was the greatest decrease was in:
In this regard, Chip Lupo, WalletHub analyst, commented that “in the case of Santa Clarita, Fremont and San José, California, the three cities with the largest s decreases, residents are quite wealthy and responsible with credit, so the large reduction in their debt is not surprising.”
“A significant decrease in the average debt of residents of a city is an excellent sign: it shows that people are not only keeping up with their payments, but they are also reducing their loans,” highlights Lupo.