U.S. Sees Sharp Increase in Household Debt Delinquency
The central bank's latest Quarterly Report on Household Debt and Credit revealed that 4.8 percent of all outstanding debt had entered delinquency status by December's close—a 0.3 percentage point spike from the preceding three-month period.
Early-stage delinquencies showed divergent patterns across debt categories. Mortgage and student loan defaults rose, while other borrowing segments remained stable.
Severe delinquencies—representing more advanced stages of non-payment—intensified for credit cards, mortgages, and student loans. Conversely, auto loan and home equity line of credit defaults edged downward.
Wilbert van der Klaauw, economic research advisor at the New York Fed, acknowledged the mounting pressures. "As household debt levels grow modestly, mortgage delinquencies continue to increase," he stated.
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