Monday, June 10, 2019

US Credit Card Debt Declines


Household Debt Climbs for 19th Consecutive Quarter

The CMD’s latest Quarterly Report on Household Debt and Credit reveals that total household debt rose by $124 billion to reach $13.67 trillion in the first quarter of 2019, an increase of 0.9 percent, compared to a rise of 0.2 percent in the fourth quarter of 2018. This past quarter, balances climbed by 1.3 percent on mortgages, 0.5 percent on auto loans, and 2.0 percent on student loans, while total credit
card balances fell by 2.5 percent. 

Mortgage balances shown on consumer credit reports on March 31 stood at $9.2 trillion, a $120 billion increase from the fourth quarter of 2018.

Balances on home equity lines of credit (HELOC) declined modestly, by $6 billion, continuing their declining trend from 2009. HELOC balances now stand at $406 billion.
Non-housing balances increased by $10 billion in the first quarter, with a $6 billion increase in auto loan balances and a $29 billion increase in student loan balances offset by a $22 billion decline in credit card balances, the latter decline consistent with seasonal patterns.

US consumers lowered credit card and home equity lines of credit as they should do.  Home mortgages are the only “good debt” and this increased as it should. This may have an effect on lowering retail sales as it should. Bravo!

Norb Leahy, Dunwoody GA Tea Party Leader


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