Household Debt Hits Record High. Fed Issues “Subprime Warning.”

America is drowning in debt.

Take note.

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The Fed Issues A Subprime Warning As Household Debt Hits A New All Time High

ZeroHedge, Nov 14, 2017 – Excerpts:

According to the just released latest quarterly household debt and credit report by the NY Fed, Americans’ debt rose to a new record high in the second quarter on the back of an increase in every form of debt: from mortgage, to auto, student and credit card debt.

Aggregate household debt increased for the 13th consecutive quarter, rising by $116 billion (0.9%) to a new all time high. As of September 30, 2017, total household indebtedness was $12.96 trillion, an increase of $605 billion from a year ago and equivalent to 66% of US GDP, versus a high of around 87% in early 2009. After years of deleveraging in the wake of the 2007-09 recession, household debt has risen more than 16.2% since the trough hit in the spring of 2013.

Some more big picture trends:

Mortgage balances, the largest component of household debt, increased again during the first quarter to $8.74 trillion, an increase of $52 billion from the second quarter of 2017.  Balances on home equity lines of credit (HELOC) have been slowly declining; they dropped by $4 billion and now stand at $448 billion.  Non-housing balances, which have been increasing steadily for nearly 6 years overall, saw a $68 billion increase in the third
quarter. Auto loans grew by $23 billion and credit card balances increased by $24 billion, while student loans saw a $13 billion increase.

  • Suggestive of a modest rebound in mortgage activity, mortgage originations in Q3 were $479 billion, up from $421 billion in Q2 if still below the $491 billion as of Q1. The Mortgage delinquency rate improved to 1.38% from 1.47% prior quarter.The number of household loans increased to 671.07 million.
  • Auto loan balances increased by $23 billion, continuing their 6-year trend.  Auto loan delinquency rates increased slightly, with 4.0% of auto loan balances 90 or more days delinquent on September 30. There was a total of $150.6 billion in auto loan originations in Q3, an uptick from the $148 billion in the second quarter of 2017, and among the highest quarterly volumes seen in the Fed’s data.

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Student Loans Owed and Securitized, Outstanding 2006-16

Student Debt

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Fed policies and U.S. government central-planning debt-based strategies have done nothing to set U.S. citizens back on sound financial footing.  The system is fragile.

It is time now to eliminate debt at ground level.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2585)

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