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Posted: 8/3/2022 11:34:00 AM EDT
(NEWSER) – Americans owe more money than they ever have before. The New York Federal Reserve on Tuesday shared that household debt increased to $16.15 trillion in the second quarter. It's the first time it's surpassed the $16 trillion mark, and represents a 2%—or $312 billion—rise over Q1, reports CNBC. In a press release, the NY Fed notes the amount owed is $2 trillion higher than at the end of 2019, just prior to the start of the pandemic. About two-thirds of the rise ($207 billion) was due to an increase in mortgage balances, which now sit at $11.4 trillion.
Credit card debt jumped by $46 billion in the quarter, and $100 billion over the last year. That's a 13% annual increase—the biggest in 20-plus years. Also on the credit card front, CNN reports that over the quarter, Americans opened 233 million new card accounts; that's the most since 2008. Auto loans balances were up $33 billion for the quarter, and other miscellaneous balances (retail credit cards, consumer loans) were up $25 billion. The one thing that didn't really budge: the $1.59 trillion student loan balance. All told, non-housing balances grew by $103 billion; that's the largest increase since 2016. As for who is incurring the debt, an accompanying blog post from NY Fed researchers digs in: "Household debt is held overwhelmingly by higher-score borrowers, even more so now than it has been in the history of our data. ... The vast majority of mortgage balances are now held by borrowers with high credit scores. ... If we exclude mortgages and look at all other types of debt, we see a shifting of balances toward higher credit score borrowers, albeit a less dramatic one." CNBC notes that at the end of the quarter, 2.7% of debt was in delinquency; that's almost 2 percentage points lower than it was as the pandemic began in Q1 2020. https://www.newser.com/story/323744/portrait-of-americans-finances-we-owe-more-than-ever.html?utm_source=part&utm_medium=uol&utm_campaign=rss_world_login |
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When the economic collapse comes, people will not be paying bills and this $16 Trillion will be a big kick in the nuts.
Owing money on a house you bought in the last couple of years and now worth much less, credit card debt, etc. It will be bad. |
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Only way to solve it is a complete reset .
No one owes any money to any financial institution starting RIGHT NOW! No need to thank me folks just here to help |
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I’m doing fantastic then, my household debt is quite a bit less than $16 trillion.
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Quoted: When the economic collapse comes, people will not be paying bills and this $16 Trillion will be a big kick in the nuts. Owing money on a house you bought in the last couple of years and now worth much less, credit card debt, etc. It will be bad. View Quote Welcome to the New United State of Zimbabwe. |
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Total household debt isn't that interesting of a statistic. Population grows every year and the economy grows most years. It naturally follows that household debt will increase over time even if people are doing everything right.
A more interesting statistic would be household debt per capita or per household. That would tell you a lot more about how individuals are growing their liabilities or not. |
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Only debt I have is my house, and it's worth ~ $250K more than I owe on it.
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“I don’t owe anyone!”
I have a mortgage at 1.9% on my second home. I owe money on the house. But I’m paying next to nothing to do so, and it’s value is skyrocketing still (despite the market). The cash that could be paying the house down or off is elsewhere, making money. Owing money isn’t always a bad thing. |
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Now divide that by the 126,000,000 households in the US.
It's not even 150k. It's a nothing burger. Now, tell me how much CC Debt the country is carrying and I'd likely be more inclined to be alarmed. Though probably still not surprised. The mix of debt is way more important than the total amount of debt. |
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Quoted: Oh yeah? Try not paying property taxes. I don't have any debt either, but will be paying around 10k in property taxes to the king. I am not stupid though, and realize I get things from my taxes. Our county is almost 95% paved roads. View Quote that's insane, $10k?? do you have a giant mansion or something?! |
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Quoted: Only debt I have is my house, and it's worth ~ $250K more than I owe on it. View Quote That is about us as well, all do we do have one car note, at 0% interest, which is probably 70% paid off (I'm guessing a $30K loan a few years ago). I'm thinking that if we emptied our checking and savings, we could pay off our house and car tomorrow, but we would be flat broke for a few months. Our property taxes are bigger than our house note. |
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Gold Diggers of 1933 - "We're in the Money" |
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Quoted: Now divide that by the 126,000,000 households in the US. It's not even 150k. It's a nothing burger. Now, tell me how much CC Debt the country is carrying and I'd likely be more inclined to be alarmed. Though probably still not surprised. The mix of debt is way more important than the total amount of debt. View Quote Good point, and this is just a hair under what we probably owe in total debt for our house and car. Our annual income is quite a bit higher than our total debt. Our monthly credit card bills are a few grand every month. We put almost everything on our CC'....but we pay them off every month. I think it is safe to say that I have not paid more than $50 in credit card interest over the past 20 years. That interest usually comes from me forgetting to pay a credit card I only use everyone once in awhile, so a month of interest adds up. I get any late fee removed and just pay the bill/interest off. |
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I think about half of that is my dumbass sister and her boyfriend.
They are currently still making payments on their last TWO vacations. |
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Quoted: I'm right there with you. Nothing owed to anyone. View Quote View All Quotes View All Quotes For the first time in my adult life, I have no mortgage, no cc bills, no car payments. Payday is no longer 'Mothers Day'.....as in 'Pay this Mother, pay that Mother' |
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Quoted: I think about half of that is my dumbass sister and her boyfriend. They are currently still making payments on their last TWO vacations. View Quote With the way things are going, they may be the smart ones and the debt free are the idiots. It’s calming being debt free, but knowing the dumbest of fucks are gaming the system at my expense takes some of the shine off it. |
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It will get worse. Stuck behind people at checkout that go through 9 cards before finding one that isn't maxed out is a common experience. And becoming more common in grocery stores lately.
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Quoted: Nice home and 350 acre farm. Not bad when I see what folks in places like NYS and Kali are paying. View Quote California actually has lower property taxes than other states because of Prop 13 https://en.wikipedia.org/wiki/1978_California_Proposition_13 |
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Quoted: Quoted: I think about half of that is my dumbass sister and her boyfriend. They are currently still making payments on their last TWO vacations. YOLO !!¡!!!!! That's literally their answer. "We're gonna owe people money forever anyway so may as well do what we can. YOLO." |
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I been saying that for a while. Most people have to be drowning in debt. I am poor for GD but make ok money and I can’t seem to afford shit like people that make less then me. Everyone is always getting new cars, huge home repairs, & vacations.
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I just paid my credit card this morning, the ENTIRE $22.36 balance.
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Not good
75% of millennial owe 100k or more Not including home mortgages. |
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My ex has 12,000 on her credit card and just ordered cable TV at 180 a month
She makes about 500 a week take home Has a 640 lot rent on her trailer Prenups and her relationship with the guy she worked with that got fired because he was drunk on the job has consequences. |
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Quoted: I been saying that for a while. Most people have to be drowning in debt. I am poor for GD but make ok money and I can’t seem to afford shit like people that make less then me. Everyone is always getting new cars, huge home repairs, & vacations. View Quote You haven't the slightest clue what people have even if you know what they do or what their salary is. People have investments, inheritances, financial gifts, maybe even a wild lottery win here and there and generally speaking they don't keep their neighbors and coworkers up to speed on those details. I'm 100% confident that my friends and neighbors couldn't possibly guess my financial situation in a million years. I live in a neighborhood that looks nothing like my means and I know a few other people for whom the same could be said. |
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