The markets have been up and down this week, riding the trade war roller coaster. And analysts can’t seem to decide if the data of the day is telling us that the economy is sound or slowing. But we do know one thing for sure – there is a lot of debt out there, and there are signs that it might be catching up with us. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks student loan and auto loan debt, and what it be telling us about the economy. He also covers some of the latest trade war news and the last batch of economic data.
The rate of delinquency on student loan debt pushed up to 9.5% in the first quarter of 2019, even as total student loan debt climbed to $1.49 trillion according to the latest debt data from the Federal Reserve Bank of New York.
Student loan debt ranks as the second-largest consumer debt category, trailing only mortgages.
I was perusing my local newspaper’s website the other day when I came across this headline – “University of Kentucky to Give iPads to All Incoming Freshman This Fall.”
I have to admit, just seeing the headline kind of annoyed me. Because you know what I got when I started at UK as a freshman in 1985?
I didn’t get squat!
Based on the latest data, the student debt crisis in America isn’t about to end any time soon.
US household debt climbed to a record $13.54 trillion in the fourth quarter of 2018. Student loan debt makes up a sizeable chunk of that total. In fact, student loan debt now ranks as the second-largest consumer debt category, trailing only mortgages.
The national debt has pushed above the $22 trillion mark, but it’s not just Uncle Sam borrowing himself into oblivion. US household debt climbed to a record $13.54 trillion in the fourth quarter of 2018, according to a report released by the Federal Reserve Bank of New York.
Total household debt (including mortgages) now stands $869 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008 (right before the crash) and 21.4% above the post-financial-crisis trough reached in the second quarter of 2013.
Americans continue to bury themselves in debt.
US consumer credit rose by the largest amount in 11 months in October, as Americans piled on another $25.4 billion in debt, according to the latest consumer credit report by the Federal Reserve. Total consumer indebtedness is rapidly approaching $4 trillion, with Americans currently $3.96 trillion in the red.
Americans continue to pile up debt, adding to numbers that were already at record levels.
US consumer debt increased by $20.1 billion in August, pushing total consumer credit to a record $3.94 trillion, according to the latest numbers from the Federal Reserve. That comes to a 6.2% annual growth rate.
Consumer debt hit another record in the first half of 2018, but the rate of borrowing seems to be slowing down. Could this be a sign that the debt-based house of cards economy is close to the point of collapse?
Total consumer debt rose by $176 billion in Q2, a 4.8% year-on-year increase. That pushed total debt to a record $3.87 trillion, according to numbers released by the Federal Reserve.
Total household debt climbed to a record $13 trillion in 2017. One factor driving overall American indebtedness higher is the ever-increasing burden of student loans.
A recent article in the New York Times focused on three charts that illustrate the ever-increasing toll of the student loan bubble – and it’s not just impacting students. Parents are increasingly feeling the squeeze.
Total household debt has climbed to a record $13 trillion. One factor driving overall American indebtedness higher is the ever-increasing burden of student loans, and a policy change being mulled by the Trump administration could cause that student loan bubble to pop.
Student loan debt stands at a staggering $1.4 trillion, owed by some 44.2 million borrowers. The average class of 2016 graduate has $37,172 in student loan debt. That represents a 6% increase from the previous year.