The State of U.S. Household Debt
- U.S. household debt rose to $13.3 trillion as of the second quarter of 2018, according to the Federal Reserve Bank of New York – higher than the previous peak of $12.68 trillion in the third quarter of 2008.
- The growing level of debt is a direct reflection of the solid job market and rising optimism about economic growth among both banks and lenders, allowing Americans to improve their credit and qualify for loans.
- While household debt surpassing previous high points may sound worrisome, it’s not necessarily cause for concern. The total number of Americans borrowing relative to the size of the U.S. GDP – as well as the household debt-to-income ratio – remains well below prior peaks, which could reflect improved management of household debt and a stronger economy.
The information contained in this presentation does not purport to be a complete description and is intended for informational purposes only. Any opinions are those of the content creator and not necessarily those of the named advisor(s), JWC or JWCA. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.