In 2021, American consumers took on more than $1 trillion in new debt, the most in 14 years, to help them afford homes, cars, and other items that are rapidly increasing in price. According to the Federal Reserve Bank of New York, total consumer debt is currently over $15.6 trillion, although the steep increase in borrowing isn’t yet cause for concern. According to The Wall Street Journal, consumer loan delinquencies are at an all-time low, and 87 percent of new debt is secured by homes that can appreciate in value over time.
According to Fortune, credit card balances increased by $52 billion to $860 billion in the latest quarter, the highest quarterly increase on record. Despite this, the total is $71 billion less than it was before the outbreak.
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