Bad news for Americans: Alarming report released.

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Alarming Report on Americans Released – This Is a Very Bad Sign

In an alarming sign of the current state of the economy, a new report has revealed just how tightly everyday Americans are being squeezed.

The New York Federal Reserve’s quarterly report on household debt and credit, released this month, found that “aggregate household debt balances increased by $148 billion in the first quarter of 2023.” That amounts to a 0.9 percent rise from the fourth quarter of 2022.

While that quarter-to-quarter bump is notable, the big-picture outlook is just as grim.

According to the report, the total outstanding balance for Americans currently sits at $17.05 trillion. That whopping figure is a $2.9 trillion increase from the tail end of 2019.

The timing of that spike is notable because it’s right before the COVID-19 pandemic hit en masse. The government response to the pandemic, including the shuttering of swathes of businesses, undoubtedly played a role in the increase.

• Mortgage balances shown on consumer credit reports increased by $121 billion, standing at $12.04 trillion by the end of March.
• Home equity lines of credit increased by $3 billion, the fourth straight quarter in which that figure went up. The total outstanding balance is $339 billion.
• Auto loan balances went up by $10 billion in the first quarter. That has been trending up since 2011.
• Other debt balances, such as retail-specific cards and other consumer loans (for instance, getting a credit card for specific use at an auto repair shop), went up by $5 billion.
• The ever-divisive student loan balance is at $1.6 trillion, a $9 billion bump from last quarter.

This report comes at a poor time for President Joe Biden, as it illustrates that the economy is not in good shape as the president seeks re-election in 2024.

Alarming Report on Americans Released – This Is a Very Bad Sign

In an alarming sign of the current state of the economy, a new report has revealed just how tightly everyday Americans are being squeezed.

The New York Federal Reserve’s quarterly report on household debt and credit, released this month, found that “aggregate household debt balances increased by $148 billion in the first quarter of 2023.” That amounts to a 0.9 percent rise from the fourth quarter of 2022.

While that quarter-to-quarter bump is notable, the big-picture outlook is just as grim.

According to the report, the total outstanding balance for Americans currently sits at $17.05 trillion. That whopping figure is a $2.9 trillion increase from the tail end of 2019.

The timing of that spike is notable because it’s right before the COVID-19 pandemic hit en masse. The government response to the pandemic, including the shuttering of swathes of businesses, undoubtedly played a role in the increase.

Bleak Figures

The New York Federal Reserve highlighted a number of bleak figures regarding the debt afflicting average Americans.

• The only total balance that did not go up in the first quarter was credit card balance. That total remained flat at $986 billion.
• However, the report noted that remaining flat in this instance isn’t a good thing. Typically, credit card balances decline in the first quarter.
• Mortgage balances shown on consumer credit reports increased by $121 billion, standing at $12.04 trillion by the end of March.
• Home equity lines of credit increased by $3 billion, the fourth straight quarter in which that figure went up. This recent surge follows a 13-year decline in those particular lines of credit.

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Alarming Report on American Debt Released

The total outstanding balance of credit in the US is a staggering $339 billion. And it’s not just credit card debt that’s on the rise. Auto loan balances went up by $10 billion in the first quarter alone, a trend that’s been on the rise since 2011. Other debt balances, such as retail-specific cards and other consumer loans, also increased by $5 billion.

But perhaps the most concerning figure is the student loan balance, which now stands at $1.6 trillion, a $9 billion increase from the previous quarter. And to make matters worse, 102,000 consumer credit reports had bankruptcy added to their first quarter reports, marking the first time that figure has exceeded 100,000 since 2021.

A Poor Time for President Biden

This report comes at a poor time for President Joe Biden, as it illustrates that the economy is not in good shape as the president seeks re-election in 2024. It’s clear that something needs to be done to address the growing debt crisis in America.

What Can We Do?

It’s time for Americans to take control of their finances and start making smarter decisions when it comes to borrowing and spending. Here are a few tips:

• Make a budget and stick to it
• Avoid unnecessary purchases
• Pay off high-interest debt first
• Consider debt consolidation or refinancing

By taking these steps, we can start to turn the tide on America’s debt crisis and build a brighter financial future for ourselves and our families.

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