The total household debt shouldered by the Americans has surpassed its previous high by $837 billion. It now stands at $13.5 trillion as reported in the last quarter. There is also an unusual rise in the delinquencies in student loan. This signifies the age of the nation’s economic expansion as getting old.
The serious delinquency rates of student debt rose from 8.6% to 9.1% in the third quarter. This based on the data and reports from the Federal Reserve Bank of New York.
While the economy saw a patch of improvement in student debts, this comes as a reversal post that period. These delinquency flows are on an auto debt increase and on credit card debts since the last year. This seems to be warning signals for economists.
America, the largest economy in the world has crossed growth potential this year due to high rates of customer spending and reducing rates of unemployment to an extent of being the lowest since the 1960s. A continuation in this growth for another year will mean it to be the longest ever period of growth.
The total household debt encompasses $9.1 of mortgages and is now the highest. The previous highest was when the last recession was starting to spread its reach. The steady growth in such debt has been seen for the last 4 years and is now nearly 21% higher than the trough in 2013.