(NEW YORK) — U.S. household debt, including mortgages, credit cards, auto loans and student loans, reached an all-time high of $18.8 trillion in the first three months of the year, according to new data Tuesday from the Federal Reserve Bank of New York.
The increase in overall debt was driven by higher balances on mortgages and auto loans.
Student loan debt slightly decreased to $1.66 trillion. However, many borrowers are falling behind on their payments, with more than 10% of student loan balances now past due, nearing pre-pandemic levels, the Federal Reserve Bank of New York said.
Credit card debt dipped by $25 billion during the first quarter of the year, with outstanding card balances at $1.25 trillion. Credit card debt is up by $70 billion over the past year.
On a call with reporters Tuesday morning, researchers at the New York Fed described Americans’ overall credit as “stable,” but noted there are weaknesses among younger consumers and lower-income households.
According to officials, mortgage balances are $13.2 trillion and auto debt stands at $1.69 trillion.
The record-high household debt comes amid rising inflation, which rose for a second consecutive month, government data on Tuesday showed.
Prices rose 3.8% in April compared to a year earlier, marking an increase from a year-over-year inflation rate of 3.3% in the prior month. Annual inflation jumped to its highest level in three years, U.S. Bureau of Labor Statistics (BLS) data showed.
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