Americans are largely keeping up with their debt despite high inflation and economic uncertainty, according to the Federal Reserve Bank of New York. However, more households are having trouble with mortgage payments and other debt.
Debt Delinquency Rates
The New York Fed’s latest Quarterly Report on Household Debt and Credit shows that more people are going at least 30 days late on their mortgage payments. Additionally, a greater share of loans went into serious delinquency on car payments.
While delinquency rates remain elevated from pre-pandemic levels, they are holding stable and not deteriorating to the rates seen during the Great Financial Crisis, according to New York Fed researchers.
Matt Schulz, a consumer finance analyst for LendingTree, notes that the economy is experiencing mixed results, with some people doing well and others struggling due to high prices and a challenging job market.
Overall US household debt balances edged down by $13 billion, or 0.1%, to $18.8 trillion during the second quarter. However, this decline is largely due to a quirk in how mortgage loans were recorded during the quarter.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
