October 12, 2023 Blog

Household Debt Trends of Q2 2023

In August of 2023, The Federal Reserve Bank of New York’s Center for Microeconomic Data published its report on household debt for Quarter 2 (April 1st – June 30th) of 2023. Their report detailed trends in household debts, and keyed in on data pertaining to mortgages, credit cards and auto loans.

According to their report, overall household debt increased by .1%, which amounts to an increase of 16 billion dollars adding to the already staggering $17 trillion total for American household debt. Persistent inflationary pressure, since 2020, has fueled much of this debt for the consumer.

Credit card debts spiked high and fast, exceeding the previous high of 1 trillion dollars by an additional $45 billion. The report also noted that 5.48 million credit card accounts were created in just this quarter. Mortgages largely stayed stable, due to a decrease in originations and housing prices stabilizing. Auto loans rose by another $20 billion, raising the amount to $179 billion. On the other hand, student loan balances decreased by $35 billion, down to $1.57 trillion.

Inflationary pressures are making NOW the best time to send in your delinquent accounts for the best possible chances for collections. The longer you wait, the more your money will depreciate. For more information on money depreciation, check out our blog about it right here!

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If you would like to discuss this article or any other collection needs you may have, please contact Jeff at 866-431-7220, or jeff@fsgbcollections.com

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