{"id":1588008,"date":"2022-08-04T07:17:19","date_gmt":"2022-08-04T11:17:19","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1588008"},"modified":"2022-08-04T07:17:29","modified_gmt":"2022-08-04T11:17:29","slug":"u-s-household-credit-card-debt-up-13-percent-as-cost-of-living-surges-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-household-credit-card-debt-up-13-percent-as-cost-of-living-surges-report\/","title":{"rendered":"U.S. Household Credit Card Debt Up 13 Percent as Cost of Living Surges: Report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" 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<!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Credit card <a href=\"https:\/\/www.theepochtimes.com\/t-debt\">debt<\/a> held by American households surged in the second quarter of 2022, according to the Federal Reserve Bank of New York\u2019s Center for Microeconomic Data\u2019s quarterly report, published on Aug. 2.<\/p>\n<p>The report (<a href=\"https:\/\/www.newyorkfed.org\/medialibrary\/interactives\/householdcredit\/data\/pdf\/HHDC_2022Q2\">pdf)<\/a> on household debt and credit showed that\u00a0total household debt reached $16.15 trillion at the end of June, marking an increase of $312 billion, or a 2 percent rise from the first quarter of 2022.<\/p>\n<p>\u201cBalances now stand at $16.15 trillion and have increased by $2 trillion since the end of 2019, just before the pandemic recession,\u201d notes the report, which is\u00a0based on data from the New York Fed\u2019s nationally representative\u00a0Consumer Credit Panel.<\/p>\n<p>Mortgage balances rose by $207 billion in the second quarter of 2022 and stood at $11.39 trillion at the end of June, compared with $10.44 trillion in the year-ago period, while <a href=\"https:\/\/www.theepochtimes.com\/t-credit-card\">credit card<\/a> balances also have increased, by $46 billion, since the first quarter<\/p>\n<p>The report notes that while\u00a0seasonal patterns typically include an increase in the second quarter, \u201cthe 13 percent cumulative increase in credit card balances since second quarter 2021 represents the largest in more than 20 years.\u201d<\/p>\n<p>Auto loans, meanwhile, also rose, by $33 billion, in the second quarter, to $199 billion, which marks a continued\u00a0upward trajectory that has been in place since 2011.<\/p>\n<p>Student loan balances, which have been on hold since early on during the COVID-19 pandemic, now stand at $1.59 trillion, roughly unchanged from the first quarter of 2022.<\/p>\n<p>\u201cOther balances\u2014which include retail cards and other consumer loans\u2014increased by a robust $25 billion,\u201d the report notes. \u201cIn total, non-housing balances grew by $103 billion, the largest increase seen since 2016.\u201d<\/p>\n<h2>Cutting Back on Spending<\/h2>\n<p>The data come as Americans are battling with consumer prices that were up 9.1 percent over the 12. months ended June, which is the\u00a0largest increase in 40 years.<\/p>\n<p>A recent poll by\u00a0Suffolk University\/USA TODAY (<a href=\"https:\/\/www.suffolk.edu\/-\/media\/suffolk\/documents\/academics\/research-at-suffolk\/suprc\/polls\/national\/2022\/7_28_2022_embargoed_marginals.pdf?la=en&#038;hash=4F682989707021DD87FA56D227603197F8E43228\">pdf<\/a>) found that 45.3 percent\u00a0of Americans have had to cut back their spending on groceries, while\u00a048 percent are driving less, as the cost of food and gasoline has surged in recent months.<\/p>\n<p>As American households are forced to tighten their belts and fears of a recession mount, a string of big retailers across the country have warned that price hikes are affecting how customers shop, and have thus slashed their\u00a0quarterly and full-year profit outlooks\u00a0in response.<\/p>\n<p>Retail giant Walmart, for example, stated late last month that food inflation has <a href=\"https:\/\/www.theepochtimes.com\/walmart-slashes-profit-outlook-as-inflation-changes-how-customers-shop_4622134.html\">reached double digits<\/a>, which is \u201caffecting customers\u2019 ability to spend on general merchandise categories and requiring more markdowns to move through the inventory, particularly apparel.\u201d<\/p>\n<p>Other firms have <a href=\"https:\/\/www.theepochtimes.com\/procter-gamble-warns-that-american-consumers-are-starting-to-crack-under-inflation_4630215.html\">sounded the alarm<\/a>, too.<\/p>\n<p>Joelle Scally, administrator of the Center for Microeconomic Data at the New York Fed, said on Tuesday that the data show \u201crobust increases in mortgage, auto loan, and credit card balances, driven in part by rising prices.\u201d<\/p>\n<p>\u201cWhile household balance sheets overall appear to be in a strong position, we are seeing rising delinquencies among subprime and low-income borrowers with rates approaching pre-pandemic levels,\u201d Scally added.<\/p>\n<p>In an accompanying\u00a0Liberty Street Economics\u00a0<a href=\"https:\/\/libertystreeteconomics.newyorkfed.org\/2022\/08\/historically-low-delinquency-rates-coming-to-an-end\/\">blog post,\u00a0<\/a>the New York Fed noted that with the supportive policies that were rolled out during the pandemic now behind us, \u201cthere are pockets of borrowers who are beginning to show some distress on their debt.\u201d<\/p>\n<p>The post added that\u00a0\u201cthe delinquency transition rates for\u00a0credit cards\u00a0and auto loans are creeping up, particularly in lower-income areas.\u201d<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-katabella-roberts\"><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Katabella Roberts is a reporter currently based in Turkey. She covers news and business for The Epoch Times, focusing primarily on the United States.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Credit card debt held by American households surged in the second quarter of 2022, according to the Federal Reserve Bank of New York\u2019s Center for Microeconomic Data\u2019s quarterly report, published<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1588008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1588008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1588008"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1588008\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1588008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1588008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1588008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}