U.S. Household Debt Hits Record $14 Trillion
U.S. HOUSEHOLD DEBT REACHES NEW PEAK...$14 TRILLION. BUT IT'S NOT ALL BAD NEWS, SOME OF THAT COMES FROM A BOOMING HOUSING MARKET THANKS TO LOW INTEREST RATES
(CNN) – Americans are in debt more now than ever before, but that’s no as bad as it might sound.
Some of that debt comes from new homeowners.
Interest rates for mortgages dipped below 4% in 2019 for the first time in three years; making it more affordable for many to buy homes.
But when it comes to spending, U.S. household are putting more on credit.
Outstanding credit card debt grew by $57 billion in 2019.
The Federal Reserve says total household debt rose by $193 billion at the end of last year, setting a new record of $14 trillion for Americans.
That’s more debt than 2008 when the U.S. was on the verge of a recession.
Still the fed chairman says the current economy is strong, but he’s not ready to issue any more interest rate cuts right now.