Total household debt in the U.S. reached $19.1 trillion as of the third quarter, according to the Federal Reserve Bank of New York. Mortgage debt accounted for $257 billion of the total $334 billion increase, with about half of that growth attributed to a reporting gap from the second quarter. Auto loan balances rose by $21 billion.
Credit card balances increased by $22 billion to reach $1.29 trillion. While the share of balances entering early or serious delinquency slightly decreased, the overall share of household debt in some stage of delinquency rose to 5% from 4.7%. Delinquency rates for mortgages and auto loans also saw an uptick.
A PYMNTS Intelligence survey of 2,087 consumers conducted in October revealed a decline in debt management confidence. Among consumers living paycheck to paycheck who were meeting their financial obligations, only 61.1% expressed confidence in managing their debt over the next year, down from 71.2% in September.
Higher regular expenses and costs exceeding income were the primary reasons cited by 41% of struggling cardholders for paying their balances in full less frequently than a year ago. Meanwhile, aggregate credit limits for cardholders increased by $115 billion during the period.
