The New York Fed Explains America's Progress In The War Against Debt


Photo: New York Fed

The deleveraging process is slowing and U.S. consumers are starting to take on more debt, according to the latest quarterly credit report from the New York Fed.The data from Q1 2011 shows consumers are agressively cutting credit card debt, down by 4.6% in the quarter, and improving their overall financial health, with foreclosures, bankruptcies, and delinquincies all down.

Overall, this report shows a stabalization in conditions. It may not seem positive at first, but with many believing housing still has some way to dip, and the deleveraging process some way to go, it may a short improvement before things get worse.

Total debt has started to level off

Credits have, notably, halted their decline in accounts

While auto loans have stalled, mortgage loan origination is up

Credit card limits have started to tick up

The number of accounts current is rising

Deliquencies are down in most categories

Mortgages remain the top portion of new deliquencies by a large margin

Foreclosures and bankruptcies are both in decline

Californian debts per capita remain high, while Nevada is sliding and New Jersey is holding firm

California, Nevada, and New Jersey retain the largest amount of mortgage debt per person

They also have the largest delinquency problems

Nevada's mortgage debt problem is getting worse after a short recovery

Foreclosures are, however, sliding

And bankruptcies too

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