From the Web: Household Debt Balances and Borrower Demographics Shift Since 2008


4/10/2017 6:30:00 PM

NewsCreditors

Economists with the Federal Reserve Bank of New York presented research on household indebtness this month, including examples of a shift away from housing-related debt toward borrowing for automobile purchases and education. “Housing-related balances are still nearly $1 trillion below the peak reached in the third quarter of 2008, but this gap was nearly entirely offset by higher auto loan balances (+$367 billion) and student loans (+$671 billion),” according the research. The economists also report that debt balances are in the hands of older and more creditworthy consumers. For example, borrowers age 60 and older have 22.5 percent of total outstanding balances, compared to 15.9 percent in 2008, according to the Fed. Student loan balances remained at approximately $1.3 trillion at the end of 2016 and aggregate balances continue to increase because more consumers have loans out and the loan amounts are increasing. The Fed’s economists will provide more detail on the student loan trends in the coming weeks.

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