A Fantastic Overview Of What's Happening To America's Love Affair With Debt

Consumer Credit

Photo: New York Fed

America’s love affair with a high personal debt balance sheet is continuing to abate, according to the latest report from the New York Federal Reserve.The report highlights how debt has declined for the last 7 quarters, and is now down $992 billion from its peak.

Things seem to be improving on debt front: delinquency rates are in decline, open credit accounts are in decline, and new foreclosures are also sliding.

All of this data is best visualized through the Fed’s charts, which show some improvements, but an ugly situation still in full force.

Debt is declining, but very slowly.

Credit cards have seen the steepest decline since the recession.

Account closures are starting to decline, while new opening are flat lining.

Mortgages are still in decline, auto loans seeing an uptick.

Credit limits are beginning to head up again.

While those current with payments is rising slowly, severely bad delinquencies remain high.

Student loans are seeing a continued rise in delinquencies, a sign the unemployment problem is hitting America's graduates.

A small uptick in overall delinquencies, but not much since Q2.

A decline in serious delinquencies, however.

Foreclosures and bankruptcies both remain high.

Consumers in collections are continuing to rise.

California still the worst, but New Jersey is rising.

It's mainly about mortgages everywhere.

Nevada has the biggest problem with serious delinquencies.

Mortgage debt late by state is improving everywhere.

Texas and Illinois are seeing slightly rising foreclosures.

New bankruptcies have come down a bit in each state.

But is the consumer abandoning this recovery?

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