Increasing debt is the not only a problem for the federal government; it's also a growing burden for U.S. consumers.
According to the New York Fed's latest Quarterly Report on Household Debt and Credit, household debt rose in 2017 for the fifth consecutive year. In the fourth quarter of 2017, household debt grew 1.5% from the third quarter to $13.15 trillion. That's equivalent to 68% of U.S. GDP.
Debt increased in all major categories: in mortgages (1.6%), student loans (up 1.5%), auto loans (up 0.7%) and credit cards (up 3.2%), but fell 0.9% for home equity loans.
Although credit card debt led the fourth-quarter debt increase, consumers owe far less in credit card debt than in all other major categories, just $834 billion, compared with $8.88 trillion for mortgages, $1.38 trillion for student loans and $1.22 trillion for auto loans.
Delinquency rates for consumer debt, defined as 90 days or more overdue, fell slightly in the fourth quarter, from 2.4% to 2.3%, and student loan delinquencies continued to lead. The delinquency rate for student loans stood at 9.3% for the fourth quarter, down from 9.6% in the third quarter, but it was more than twice the 4.6% delinquency rate for credit card debt.
