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Total Household Debt Now Has US Auto Loans Over $1 Trillion

The Federal Reserve Bank on New York compiles interest economic data on consumers and industry. After all, it is in the financial capital. While total household debt may be down from its peak, there is a first here that is worth noticing. This is the first time ever that auto loan debt has surpassed the $1 trillion mark.

Auto loan originations were shown in the New York Fed report to have reached a 10-year high in the second quarter. Loans there were $119 billion, a $38 billion increase in the system’s auto loan balance. It was also shown that the increase in auto loans was the lion’s share of the total $67 billion increase in non-housing debt balances.

Credit card balances rose by $19 billion to $703 billion. That is up $34 billion from a year earlier.

Fortunately, student loan balances remained almost flat. The student loan debt was up $1 billion in the second quarter to $1.19 trillion. That figure is still up by $72 billion over a year earlier.

Mortgage balances and home equity lines of credit (HELOC) dropped by $55 billion and $11 billion, respectively. Mortgage debt, the largest by far (and most obvious), was $8.12 trillion, and HELOC was $499 billion. There were $466 billion in new mortgage originations in the second quarter.

ALSO READ: How Obamacare Increased Insurance Coverage in Every State

It has been no secret that the new car market has been doing incredibly well. With the age of the total U.S. car fleet being ancient, this total auto debt may keep rising for a while longer.

By Jon C. Ogg