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 Total consumer debt rose 2.1 percent to $11.52 trillion in the
fourth quarter of 2013 from $11.28 trillion in the third quarter,
the New York Fed said in its quarterly household debt and credit
report. The increase, $241 billion, marked the biggest quarterly
jump since the third quarter of 2007.
Even with the increase, total household indebtedness remains 9.1
percent below its peak of $12.68 trillion in the third quarter of
2008, reflecting the extensive deleveraging by households in the
years following the housing market collapse and financial crisis.
Nevertheless, the report also marked the first year-on-year increase
in household debt since the crisis, perhaps signaling that the
deleveraging cycle has run its course.
Americans boosted credit card balances, borrowed to buy homes and
cars and took on more student debt. The only major category to see a
decline was home equity lines of credit, or HELOCs, which dropped by
$6 billion to $529 billion.
"This quarter is the first time since before the Great Recession
that household debt has increased over its year-ago levels
suggesting that after a long period of deleveraging, households are
borrowing again," said Wilbert van der Klaauw, senior vice president
and economist at the New York Fed.
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Auto loan balances jumped by $18 billion, the 11th straight
quarterly increase, although new loan originations fell to $88
billion from $97.4 billion.
Reflecting another U.S. trend, student debt rose again with
outstanding balances up $53 billion to $1.08 trillion in the fourth
quarter. Delinquency rates dipped, however, with 11.5 percent of
loans behind by 90 days or more, down from 11.8 percent in the third
quarter.
Overall household delinquency rates dropped to 5.0 percent in the
three months to December 31 from 5.3 percent in the third quarter,
extending a post-recession trend.
(Reporting by Dan Burns; editing by Chizu Nomiyama)
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