The Federal Reserve Bank of New York just released new data on household debt, and WalletHub’s inflation-adjusted analysis revealed that while U.S. households owe a record amount in absolute terms ($17.94 trillion) as of Q3 2024, inflation-adjusted debt is roughly 6% below the record from 2008. WalletHub also released a new nationally representative survey gauging how households are dealing with debt. You can find key highlights below.
Key Findings
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Q3 Results: Total household debt increased by $83 billion during Q3 2024, which is roughly 6% below the record from 2008.
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Household Average: The average household owed a total of $149,358 at the end of Q3 2024, which is $13,357 below the all-time high.
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Total Debt-to-Deposits Ratio: Despite increasing recently, the ratio of total household debt to deposits indicates consumers are in good shape, as it's still below pre-Covid levels and roughly 46% lower than its early 2000s peak.
- Total Debt-to-Assets: The ratio between total household debt and assets continues to be at a very healthy level of around 9.7%.
Full study: https://wallethub.com/edu/d/household-debt-report/120725
Household Debt Survey Results
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Debt Is Affecting Our Health: 48% of Americans think their household debt is affecting their health.
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Borrowers Are Struggling to Keep Up: 58% of Americans say they are struggling with their debt.
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Debt Swayed Voters: Nearly 3 in 5 Americans say their debt influenced how they voted in the recent election.
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Credit Card Debt Is a Common Concern: Credit card debt is the type of debt American households are struggling with the most, as 51% of people say they’re struggling with it. That’s followed by debt from mortgages (18%) and student loans (15%).
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Forecast Calls for More Debt: Nearly 2 in 5 people expect their household debt to increase in the next 12 months.
- Many People Fear Generational Debt: 50% of people are worried about how their debt will affect their kids.
Full survey: https://wallethub.com/blog/household-debt-survey/142811.