Estimated read time: 2-3 minutes
SALT LAKE CITY — The Federal Reserve Bank of New York's latest quarterly report on household debt and credit reported a $147 billion increase in household debt, resulting in a national sum of $17.94 trillion. Aggregate delinquency rates increased from the previous quarter, with 3.5% of unpaid debts labeled outstanding.
"Mortgage balances rose by $75 billion from the previous quarter to reach $12.59 trillion at the end of September," per the report. "While growth in income has outpaced debt, elevated balance levels continue to reveal stress for many households."
At the end of October, the U.S. Bureau of Labor Statistics reported a 0.2% increase in consumer goods and services, a 2.6% rise in the last year, not seasonally adjusted. This was the first rise in inflation in seven months.
To better understand the state of household debt in America, WalletHub highlighted the following statistics:
- Nearly half of Americans (48%) believe their household debt negatively affects their health.
- A majority (58%) of Americans report difficulty managing their debt.
- Almost 60% of Americans say their debt influenced their decisions in the recent election.
- Credit card debt is the most challenging type of debt for households, with 51% struggling. Mortgage debt follows at 18%, and student loans at 15%.
- Around 40% of Americans expect their household debt to increase over the next year.
- Half of Americans worry about the long-term impact of their debt on their children.
- Three in five American adults say their debt played a role in how the voted in the recent presidential election.
"Household debt continues to rise, but things currently look more favorable when you adjust for inflation," WalletHub editor John Kiernan told the Deseret News in an email. "Unfortunately for household balance sheets, the busy holiday shopping season is coming up, and interest rates may go back up sooner than people think, since inflation hasn't been properly dealt with, and a new tariff program could add inflationary pressure."
The effect debt can have on mental health can be detrimental, especially when it takes long periods to settle large payments. A recent Forbes Advisor survey asked Americans how often debt takes a toll on their mental health.
When financial struggles affect a person's mental health, "48% of the respondents reported experiencing sleep difficulties, 40% noted an increase in anxiety levels, 38% reported a diminished social life and 34% indicated they have depression."
How often do U.S. adults stress about debt:
- Always — 16.15%.
- Often — 38.25%.
- Sometimes — 31.75%.
- Rarely — 8.85%.
- Never — 4.00%.
Most recent Business stories
Emma Pitts
