U.S. Household debt rises to nearly $16 trillion in the first quarter of 2022

The Fellowship of Penny Calling Penny
May 18, 2022
Household debt in US
Household debt in US

Disclaimer: Penny Calling Penny is an affiliate website. This means that we get a small commission when you click some of the links in this article. Don’t worry – we’ll never recommend anything we wouldn’t use ourselves.

US household debt rose to $15.84 trillion and added $266 billion to the debt balances in the first quarter of 2022, according to data released Tuesday, May 4, from the Federal Reserve Bank of New York.

The rise in the total household credit was driven by Mortgage debt, making up 71% of all household debt. The mortgage balance jumped by $ 250 billion in the first quarter and now stands at $11.18 trillion, an increase of 10% from the first quarter in 2021. However, the number of new loans declined slightly during the first three months of 2022. New mortgages totaled $859 billion for the quarter, down, but still above pre-pandemic levels.

The quarterly increase culminated after homeowners took advantage of low rates to take out larger loans last year. Mortgage originations were at $859 billion, representing a decline from the high volumes seen during 2021, yet still, $197 billion higher than in Q1 2020, right before the pandemic hit the United States, according to the New York Fed.

More From Penny Calling Penny:
How to Get Out of Debt in the U.S. in 2022?
6 Excellent Ways to Prepare Your Finances Before Quitting Your Job

The non-housing loans also saw an increase of $17 billion. Auto loan balances increased by $11 billion in the first quarter while student loan balances climbed by $14 billion and now stand at $1.59 trillion.

Credit card balances, which fell during the first quarter by $15 billion, stand at $71 billion.
According to New York Fed researchers, U.S. household finances look pretty good despite the overall higher debt load. Delinquencies are at historically low levels and bankruptcy rates are near historic lows.

New York Fed researchers also noted that the overall picture looks pretty good in terms of household debt, credit, and wealth. However, it doesn’t mean that is true for the whole population.

About

Your Financial Success Starts Here

pcp-sb-2

Actionable Tips and Freebies Delivered Straight to Your Inbox! Subscribe Now!

(By subscribing, you agree to our terms & conditions, privacy policy, and disclaimer.)

You May Also Like

Was this article helpful? We'd love to hear from you!

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
search-leftline

SEARCH

search-leftline

Are you up for the challenge of saving $10,000 in 26 weeks?

Are you up for the challenge of saving $10,000 in 26 weeks?

This printable tracker will guide you week by week to reach your goal of saving $10,000. Whether you’re planning a big purchase or building an emergency fund, this tracker will keep you on the right path.

(By subscribing, you agree to our terms & conditions, privacy policy, and disclaimer.)

Woohoo!

Your Printable is en route!

Check your promotion, junk, and spam folders: Sometimes, our emails can end up in unexpected folders.

Thanks

Team Penny Calling Penny!