(AURN News) – A recent report from the New York Federal Reserve has revealed a staggering increase in household debt in the United States, prompting concerns about the financial stability of American households.
The report indicates that the total outstanding debt has surged to $4.89 trillion in 2023, compared to $2.12 trillion in 2004. One of the most alarming aspects of this report is the spike in outstanding credit card balances, which now stand at a whopping $1.13 trillion. This marks an increase of $50 billion. Auto loans have also witnessed consistent growth, rising by $12 billion since the 2nd quarter of 2020, reaching a total of $1.61 trillion.
The New York Fed’s findings extend beyond credit cards and auto loans, shedding light on the surge in retail cards and consumer loans by an additional $25 billion. The growing debt problem in our country emphasizes the need for increased financial literacy and responsibility among consumers. It’s important because as debt burdens increase, Americans may face challenges in meeting their financial obligations.
If you need help getting out of debt, the Federal Trade Commission offers tips on its website: consumer.ftc.gov/articles/how-get-out-debt.
Click play to listen to the AURN News report from Jamie Jackson: