Household Debt Increases for Q1 2019

Posted on July 17, 2019 at 9:27am by
household debt relief

The New York Federal Reserve released quarterly data on U.S. consumer borrowing trends. Consumer borrowing has topped the previous peak hit during the Great Recession. 

The New York Federal Reserve released quarterly data on U.S. consumer borrowing trends. Consumer borrowing has topped the previous peak hit during the Great Recession. 

In the report, the New York Fed notes that household debt is on a steady trend upwards compared to prior quarterly data. Household debt increased for the 19th consecutive quarter, as more borrowers take on student loan, auto loan and mortgage debt. 

In 2008 Q3, household debt stood at $12.68 trillion. However, New York Fed data shows that household debt is at $13.67 trillion for Q1 2019 – a $993 billion increase from Q3 2008. 

Q1 2019 Trends for Mortgage Debt

Mortgage balances increased by $120 billion since late last year. At the same time, mortgage delinquencies decreased by a very small amount. In Q4 2018, mortgage delinquencies were at 1.1%. However, delinquencies dropped by .1% for Q1 2019. Since the start of 2019, lenders and consumers created $344 billion in new mortgage debt.

Although foreclosures are at lower levels, as compared to historical standards, 71,000 people had foreclosures added to their credit reports since the start of the year.

Q1 2019 Trends for Student Loans

Unsurprisingly, student loan borrowing continues to increase. The New York Fed data shows student loans increased to $1.49 trillion since the start of the year. This is an increase of $29 billion since the last quarter of 2018. 

Even more worrying, 10.9 percent of student loan debt is more than 90 days late (serious delinquency) or in default. In addition, the transition rate into serious delinquency is currently at 9.4 percent. Lawmakers and 2020 presidential candidates are extremely likely to continue talking about this issue, perhaps even more as the election gets closer.

Q1 2019 Trends for Auto Loan Debt

New auto loans made during Q1 2019 accounted for $139 billion in household debt. This is lower than the number of loans made during late 2018. Compared to mortgages, auto loans were easier to secure and only required an average credit score of 708. The average credit score for a mortgage borrower was at 759.

Q1 2019 Trends for Collection Accounts and Account Closings

The New York Fed data also gives us a look at trends regarding collection accounts and closed accounts. Creditors may close an account and send it to collections if it goes into default. In other cases, borrowers themselves may close certain accounts. 

According to the data, account closings are at an all-time high in Q1 2019. The New York Fed data shows that account closings are at their highest levels since 2010. In the last year, 229 million accounts were closed. 

Solutions for Excessive Debt

As you know, credit can hurt or help you depending on how it is used. What you may not know is that you have options for debt relief if you are struggling with your payments. Bankruptcy is an option that may sometimes invoke fear, but that is only because many people have a poor understanding of what bankruptcy actually does. We find that the vast majority of people feel better once they call us and talk to one of our attorneys

Filing for bankruptcy can help you protect your most important assets. Bankruptcy is not about losing your assets, it is about protecting your assets from creditors and discharging debts. Depending on your circumstances, there are exemptions that allow you to keep your most important assets. You would need to speak with a bankruptcy attorney to determine how this applies to your case.

Bankruptcy can prevent foreclosure and help you get caught up on payments. If you are facing the possibility of foreclosure, then you should consider this option.

People also get it wrong about student loans in bankruptcy. Different bankruptcy courts have varying rules for securing student loan discharges. In Missouri, we use the totality of circumstances test, which is more lenient than the Brunner test. It cannot hurt to determine if you meet the right criteria for a student loan discharge. All it takes is a phone call to our office. However, it would be very difficult to determine whether this is an option without contacting an experienced bankruptcy attorney. 

About Our Kansas City Bankruptcy Law Firm

The Sader Law Firm can help you determine your options for debt relief. Whether you are facing foreclosure or experiencing problems with student loan payments, you should give us a call. Attorney Neil Sader has helped student loan borrowers obtain discharges for higher education debt. We also have $0 up-front filing options for Chapter 13 bankruptcy. Call us at (816)281-6349 or use our online contact form to learn more about your options.

The New York Federal Reserve released quarterly data on U.S. consumer borrowing trends. Consumer borrowing has topped the previous peak hit during the Great Recession. 

In the report, the New York Fed notes that household debt is on a steady trend upwards compared to prior quarterly data. Household debt increased for the 19th consecutive quarter, as more borrowers take on student loan, auto loan and mortgage debt. 

In 2008 Q3, household debt stood at $12.68 trillion. However, New York Fed data shows that household debt is at $13.67 trillion for Q1 2019 – a $993 billion increase from Q3 2008. 

Q1 2019 Trends for Mortgage Debt

Mortgage balances increased by $120 billion since late last year. At the same time, mortgage delinquencies decreased by a very small amount. In Q4 2018, mortgage delinquencies were at 1.1%. However, delinquencies dropped by .1% for Q1 2019. Since the start of 2019, lenders and consumers created $344 billion in new mortgage debt.

Although foreclosures are at lower levels, as compared to historical standards, 71,000 people had foreclosures added to their credit reports since the start of the year.

Q1 2019 Trends for Student Loans

Unsurprisingly, student loan borrowing continues to increase. The New York Fed data shows student loans increased to $1.49 trillion since the start of the year. This is an increase of $29 billion since the last quarter of 2018. 

Even more worrying, 10.9 percent of student loan debt is more than 90 days late (serious delinquency) or in default. In addition, the transition rate into serious delinquency is currently at 9.4 percent. Lawmakers and 2020 presidential candidates are extremely likely to continue talking about this issue, perhaps even more as the election gets closer.

Q1 2019 Trends for Auto Loan Debt

New auto loans made during Q1 2019 accounted for $139 billion in household debt. This is lower than the number of loans made during late 2018. Compared to mortgages, auto loans were easier to secure and only required an average credit score of 708. The average credit score for a mortgage borrower was at 759.

Q1 2019 Trends for Collection Accounts and Account Closings

The New York Fed data also gives us a look at trends regarding collection accounts and closed accounts. Creditors may close an account and send it to collections if it goes into default. In other cases, borrowers themselves may close certain accounts. 

According to the data, account closings are at an all-time high in Q1 2019. The New York Fed data shows that account closings are at their highest levels since 2010. In the last year, 229 million accounts were closed. 

Solutions for Excessive Debt

As you know, credit can hurt or help you depending on how it is used. What you may not know is that you have options for debt relief if you are struggling with your payments. Bankruptcy is an option that may sometimes invoke fear, but that is only because many people have a poor understanding of what bankruptcy actually does. We find that the vast majority of people feel better once they call us and talk to one of our attorneys. 

Filing for bankruptcy can help you protect your most important assets. Bankruptcy is not about losing your assets, it is about protecting your assets from creditors and discharging debts. Depending on your circumstances, there are exemptions that allow you to keep your most important assets. You would need to speak with a bankruptcy attorney to determine how this applies to your case.

Bankruptcy can prevent foreclosure and help you get caught up on payments. If you are facing the possibility of foreclosure, then you should consider this option.

People also get it wrong about student loans in bankruptcy. Different bankruptcy courts have varying rules for securing student loan discharges. In Missouri, we use the totality of circumstances test, which is more lenient than the Brunner test. It cannot hurt to determine if you meet the right criteria for a student loan discharge. All it takes is a phone call to our office. However, it would be very difficult to determine whether this is an option without contacting an experienced bankruptcy attorney. 

About Our Kansas City Bankruptcy Law Firm

The Sader Law Firm can help you determine your options for debt relief. Whether you are facing foreclosure or experiencing problems with student loan payments, you should give us a call. Attorney Neil Sader has helped student loan borrowers obtain discharges for higher education debt. We also have $0 up-front filing options for Chapter 13 bankruptcy. Call us at (816)281-6349 or use our online contact form to learn more about your options.

The New York Federal Reserve released quarterly data on U.S. consumer borrowing trends. Consumer borrowing has topped the previous peak hit during the Great Recession. 

In the report, the New York Fed notes that household debt is on a steady trend upwards compared to prior quarterly data. Household debt increased for the 19th consecutive quarter, as more borrowers take on student loan, auto loan and mortgage debt. 

In 2008 Q3, household debt stood at $12.68 trillion. However, New York Fed data shows that household debt is at $13.67 trillion for Q1 2019 – a $993 billion increase from Q3 2008. 

Q1 2019 Trends for Mortgage Debt

Mortgage balances increased by $120 billion since late last year. At the same time, mortgage delinquencies decreased by a very small amount. In Q4 2018, mortgage delinquencies were at 1.1%. However, delinquencies dropped by .1% for Q1 2019. Since the start of 2019, lenders and consumers created $344 billion in new mortgage debt.

Although foreclosures are at lower levels, as compared to historical standards, 71,000 people had foreclosures added to their credit reports since the start of the year.

Q1 2019 Trends for Student Loans

Unsurprisingly, student loan borrowing continues to increase. The New York Fed data shows student loans increased to $1.49 trillion since the start of the year. This is an increase of $29 billion since the last quarter of 2018. 

Even more worrying, 10.9 percent of student loan debt is more than 90 days late (serious delinquency) or in default. In addition, the transition rate into serious delinquency is currently at 9.4 percent. Lawmakers and 2020 presidential candidates are extremely likely to continue talking about this issue, perhaps even more as the election gets closer.

Q1 2019 Trends for Auto Loan Debt

New auto loans made during Q1 2019 accounted for $139 billion in household debt. This is lower than the number of loans made during late 2018. Compared to mortgages, auto loans were easier to secure and only required an average credit score of 708. The average credit score for a mortgage borrower was at 759.

Q1 2019 Trends for Collection Accounts and Account Closings

The New York Fed data also gives us a look at trends regarding collection accounts and closed accounts. Creditors may close an account and send it to collections if it goes into default. In other cases, borrowers themselves may close certain accounts. 

According to the data, account closings are at an all-time high in Q1 2019. The New York Fed data shows that account closings are at their highest levels since 2010. In the last year, 229 million accounts were closed. 

Solutions for Excessive Debt

As you know, credit can hurt or help you depending on how it is used. What you may not know is that you have options for debt relief if you are struggling with your payments. Bankruptcy is an option that may sometimes invoke fear, but that is only because many people have a poor understanding of what bankruptcy actually does. We find that the vast majority of people feel better once they call us and talk to one of our attorneys. 

Filing for bankruptcy can help you protect your most important assets. Bankruptcy is not about losing your assets, it is about protecting your assets from creditors and discharging debts. Depending on your circumstances, there are exemptions that allow you to keep your most important assets. You would need to speak with a bankruptcy attorney to determine how this applies to your case.

Bankruptcy can prevent foreclosure and help you get caught up on payments. If you are facing the possibility of foreclosure, then you should consider this option.

People also get it wrong about student loans in bankruptcy. Different bankruptcy courts have varying rules for securing student loan discharges. In Missouri, we use the totality of circumstances test, which is more lenient than the Brunner test. It cannot hurt to determine if you meet the right criteria for a student loan discharge. All it takes is a phone call to our office. However, it would be very difficult to determine whether this is an option without contacting an experienced bankruptcy attorney. 

About Our Kansas City Bankruptcy Law Firm

The Sader Law Firm can help you determine your options for debt relief. Whether you are facing foreclosure or experiencing problems with student loan payments, you should give us a call. Attorney Neil Sader has helped student loan borrowers obtain discharges for higher education debt. We also have $0 up-front filing options for Chapter 13 bankruptcy. Call us at (816)281-6349 or use our online contact form to learn more about your options.