US households owe record amount, topping pre-recession peak

Source https

It took 9 years, but household debt finally surpassed the 2008 peak, according to the New York Fed's just-released report on first quarter household debt and credit (pdf).

The expanding debt level is an indication that numerous Americans that struggled during the Great Recession have repaired their individual credit sufficiently to qualify for new loans.

Banks including Fifth Third Bank Corp. have been trimming their loan books and cutting back on riskier credit as delinquent auto loan balances surge. For one, mortgage and credit card debt is lower than it was before the recession, with the difference being made up by an increase in student loan and auto debt, CBS News reports. Mortgage balances rose 1.7% last quarter from the final three months of 2016, while home-equity lines of credit were down 3.6% in the first quarter.

"This record debt level is neither a reason to celebrate nor a cause for alarm", said Donghoon Lee, research officer at the New York Fed.

Alibaba Group Holding Ltd (BABA) Stock Rating Reaffirmed by MKM Partners
Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). Newport Asia Llc increased Alibaba Group Holding ( BABA ) stake by 17.27% reported in 2016Q4 SEC filing.

On the whole, a record low of 203,000 consumers saw a bankruptcy notation added to their credit reports during the period, a 1.7% decline from the year prior. When the housing market crashed, leading to the Great Recession and the 2008 financial crisis, total debt fell off dramatically. Particularly so, as the Federal Reserve is normalising the USA monetary conditions with borrowing costs going up, the issuance of the debt and refinancing of existing loans is now more expensive, and the downside risks of the monetary policy are increasingly prominent in the projected dynamics of the broader GDP expansion. Auto loan balances continued to rise, by $10 billion to $34 billion.

Ally Financial Inc., which Bloomberg Intelligence estimates has 55 percent of its loan book in auto credit, is one lender trying to distance itself from the weaker borrowers. Prior to the recession, the average US household was leveraged to 100 percent of its worth, meaning most people owed as much money as they had. Almost 11 percent of that debt is 90 days overdue or more.

The shift has been particularly dramatic in the case of mortgages, which have become much harder to obtain for Americans with lower credit scores.

But graduation rates haven't increased much over the past decade, U.S. Department of Education figures show, leaving millions of Americans with debt and without the means to repay it. Total mortgage debt as of Q1 2017 was $8.63 trillion. Credit card transitions have also ticked up.

Related News:

  • Texas lands top prep recruit Mohamed Bamba

    Texas lands top prep recruit Mohamed Bamba

    He selected Texas over Kentucky, Duke, Michigan and Harvard. "He's as unique a person and player as I've been around". With the addition of Bamba, Texas' five-man 2017 class moves to No. 3 in the recruiting class rankings.

    ICJ unanimously stays Jadhav's execution till final verdict

    Pakistani Prime Minister Nawaz Sharif scheduled a national security meeting on Friday to discuss the court order . The ICJ, earlier, ordered Pakistan to halt the execution of the Indian spy until a final decision is reached.

    Analysts Expect Chico's FAS, Inc

    Peregrine Capital Management LLC purchased a new stake in shares of Chico's FAS during the third quarter worth about $14,307,000. Following the completion of the transaction, the insider now owns 153,260 shares of the company's stock, valued at $2,191,618.
  • Leonardo DiCaprio and model Nina Agdal have broken up

    I personally think it's good to hear that the two are still cordial, and that the breakup didn't ruin their friendship. He dated actress Blake Lively in 2011, before her marriage to actor Ryan Reynolds the following year.
    ISIS attacks Afghan media broadcaster

    ISIS attacks Afghan media broadcaster

    Police said, the attackers entered Radio Television Afghanistan ( RTA ) and engaged in a gun battle with security forces. Both the Taliban and Islamic State have a presence in Nangarhar province, of which Jalalabad is the capital.

    NBA Conference Semi-Finals, Game 7: Wizards vs Celtics

    Thomas hit two superlative three-pointers while Marcus Smart added another in a 1:13 spell that put the Celtics up for good. The Boston Celtics sent the Washington Wizards packing in Game 7, and now they're on to the Eastern Conference Finals.
  • India retain top position in latest ICC Test rankings

    India retain top position in latest ICC Test rankings

    Australia finish third on this list, followed by their traditional rivals England who grab the fourth spot. India was the number 1 Test team after they won the Border-Gavaskar trophy defeating Australia .
    Nine Injured In Violence Outside Turkish Ambassador's Residence

    Nine Injured In Violence Outside Turkish Ambassador's Residence

    The United States sees the YPG as distinct from the PKK and as a valuable partner in the fight against Islamic State. Online court records say he must return to court June 1 and Necmi on July 12.
    OnePlus 5 will capture 'some of the clearest photos around', apparently

    OnePlus 5 will capture 'some of the clearest photos around', apparently

    OnePlus has announced that they've teamed up with DxO to enhance the photography experience on their upcoming flagship. Other than that OnePlus 5 6GB RAM variant is likely to come in two storage options - a 64GB and 128GB built-in flash.
  • Tottenham sign off in style, Liverpool boost top-four bid

    Tottenham sign off in style, Liverpool boost top-four bid

    Harry Kane and Dele Alli delight in Tottenham's victory over Manchester United in the final match at White Hart Lane. We need to feel that Wembley is our home and we need to find a balance between White Hart Lane and there.
    India recall Karthik to replace injured Pandey

    India recall Karthik to replace injured Pandey

    The Tamil Nadu wicketkeeper-batsman Karthik had last played in India colours in the Asia Cup contest against Afghanistan in 2014. He scored 396 runs at an average of over 49 and a strike rate of 128.57 but now has also been ruled out of the IPL.
    Labour won't hit £80000 earners with immediate income tax hike, says Corbyn

    Labour won't hit £80000 earners with immediate income tax hike, says Corbyn

    The Daily Mail have published a report heavily criticising JME - following the grime artist's conversation with Jeremy Corbyn . The Conservatives remained unchanged at 49%.


Most liked

Dan Patrick Threatens To Force Special Session
All state agencies must undergo periodic "sunset" reviews by the Legislature or be forced to shut down if reforms aren't passed. Patrick deemed "hailstorm lawsuit abuse" a top priority for the legislative session, which ends May 29.

US admiral: North Korea's actions 'recipe for disaster'
Harry Harris Jr. answers questions during a speech at the Sasakawa Peace Foundation, Wednesday, May 17, 2017, in Tokyo. The Security Council on Monday condemned the North's latest missile test and warned of new sanctions.

Strategy, teamwork help Hamilton win Spanish GP over Vettel
We had one more incident during the opening lap of the race, in which two veterans of this sport participated. The most important thing is that we were there. " We'll have a tough fight and I love a challenge ".

Ainge's patience pays off with Celtics' draft lottery win
Whether or not any other player next to Thomas and Horford is enough to dethrone The King is a debate for another day. They were guaranteed no worse than the No. 4 pick to add to a team that had the best record in the East this season.

Congressman calls for Trump's impeachment on House floor
Flynn left his post in February after media reports that he misled the vice president about his contacts with Russian Federation . We have an obligation to carry out our oversight, regardless of which party is in the White House.

UN court to rule on Indian 'spy' facing execution
India told the ICJ that immediate steps must be taken to stop Pakistan's from carrying out the death sentence of Jadhav. The attorney general also reiterated that "the ICJ's verdict in this case is binding for both India and Pakistan ".

Jury finds Oklahoma cop not guilty in shooting of black man
Following Wednesday's verdict, protesters gathered outside the courthouse, chanting, " No justice, no peace, no racist police ". Before the verdict was read , District Judge Doug Drummond told a packed courtroom: "I'm asking you to trust the system".

Nestle fails to trademark four-fingered KitKat bar
Mr Justice Arnold had ruled against Nestle after a High Court hearing in January 2016, when he commented on a lack of samples. The ruling is the latest twist in a decade-long United Kingdom chocolate wars saga between Nestle and Cadbury.

Chaffetz: I'm ready to subpoena for Comey memo
The Kentucky Republican had said initially that investigations by the Senate intelligence panel and the FBI were sufficient. He says the Justice Department's naming of Robert Mueller late Wednesday as special counsel is consistent with that goal.

Applications for US jobless aid fell to 3-month low of 232K
But a stock market sell-off, if sustained, amid uncertainty over Trump's political future could jeopardize further rate increases. The latest week's data covers the period used for the monthly employment survey for May, which will be released June 2.

Aaradhya poses for camera as she leaves for Cannes with mom Aishwarya
At Cannes Film Festival, in the year 2008, Aishwarya was again seen with Abhishek and she wore her famous smile. On the other-side, Aishwarya Rai is popular at worldwide level and it will be a big deal if she gives nod.

Ashes player strike won't happen: Lehmann
Lehmann did admit that the players' would be distracted playing in the Champions Trophy but ruled out Ashes pullout. However, Lehmann is confident of sorting out the matter once the whole team gets together for the Champions Trophy.

AAA: More than 1.2M from Michigan to travel for Memorial Day
They are likely to see gas prices slightly higher than past year but much lower than in 2015. AAA.com/Diamonds - Search over 59,000 AAA Approved and Diamond Rated hotels and restaurants.

Tornadoes in Wisconsin, Oklahoma leave 2 dead
Gavin's longtime friend and neighbor of the mobile home park, Darrin Seever, is speaking out about the kind of man Gavin was. Walker and other state officials met with victims and local officials and assess tornado damage on Wednesday afternoon.

CBS pairs 'Big Bang' & spin-off; O'Brien re-ups with TBS
The Big Bang Theory just wrapped up it's tenth season on Thursday night, with the show returning with new episodes in the fall. "The Big Bang Theory" and its spin-off, " Young Sheldon ", are being paired together on CBS' 2017-2018 primetime schedule.