US Household Debt Hits Record High of 1,700 Trillion Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] U.S. household debt has reached an all-time high due to increased home purchases and credit card spending, the New York Federal Reserve Bank (New York Fed) announced on the 3rd (local time).

According to a report by Fox Business on the same day, data on household debt released by the New York Fed showed that household debt increased by $313 billion in the second quarter. This is the largest increase since 2007.

In terms of growth rate, it is also the highest level since 2014.

As a result, as of the end of June, the total household debt stood at $14.96 trillion (approximately 1,718.94 trillion KRW), continuing its record-breaking trend.

Current household debt is about $812 billion higher than pre-COVID-19 levels.

By type of debt, mortgage balances reached $10.4 trillion, increasing by $282 billion in the second quarter, while credit card balances and auto loans increased by $17 billion and $33 billion, respectively.

Student loan balances stood at $1.57 trillion, decreasing by $14 billion in the second quarter.