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Household debt levels in the U.S. increased in the first quarter of 2024, which created new challenges for already stressed credit card borrowers, according to a new report from the Federal Reserve Bank of New York released Tuesday.
The report found that overall debt levels rose by $184 billion, or 1.1%, in the first quarter to a total of $17.69 trillion. Overall borrowing levels are $3.5 trillion higher than they were at the end of 2019 prior to the onset of the COVID pandemic.
Of the total, mortgage balances rose by $190 billion to $12.44 trillion while overall outstanding credit card balances edged lower by $14 billion at the end of the quarter to $1.12 trillion. However, despite that decline, credit card balances were up 13.1% from a year ago.
The report also found that more borrowers are running into financial stress, as overall delinquency rates reached 3.2% in the first quarter of 2024 — slightly higher than the 3.1% recorded in the first quarter of 2023.
NEARLY HALF OF AMERICANS SAY FINANCES ARE TAKING TOLL ON THEIR MENTAL HEALTH
More borrowers are running into financial stress, according to a new report by the Federal Reserve Bank of New York. (iStock / iStock)
Although delinquencies ticked up in the most recent quarter, the report noted that they remain below the 4.7% that was seen at the end of 2019 before the COVID pandemic began.
The New York Fed's report also noted some areas in which strength among consumers has frayed. Transitions in delinquent borrowing levels rose in the first quarter for all borrowing types, including 8.9% of credit card accounts and 7.9% of auto loan accounts moving into
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