That didn’t take long. With the Federal Reserve’s assistance US consumer debt has now exceeded pre-crisis levels. With the idiotic prolonged ZIRP world designed by the Ph.D. economists, it’s not much of a surprise as Main Street continues to borrow.
US consumers now owe roughly $12.73 trillion to the banks and other lenders for mortgages, car loans, and credit cards spending, according to the New York Federal Reserve which now exceeds the total before the 2008 financial crisis.
Student loans is an area to watch, as it has become a greater proportion of American debt – which is not being paid back. In 10 years’ student loan debt has more than doubled with it only being 5% in 2007 and now being 11% today.
Automotive companies are enjoying the binge that Americans are on, as automakers sold a record 17.6 million cars last year to surpass the level set a year earlier. To boot, consumers are financing their purchase for longer periods of time as the average length of a new car is 62 months instead of the 55 months’ average before the great recession. Delinquencies have also climbed for 13 straight months.
The entire auto loan industry is $1.17 trillion.
American credit card debt has not surpassed the Great Recession levels. However, it is slowly starting to creep in that direction.
Credit card debt has risen from $659 billion in 2014 to $746 billion last, according to data from the New York Federal Reserve with delinquencies rising.