Consumer Debt Hits Record Level
February 21, 2019
Strong holiday spending, an increase in automotive financing and a steady rise in student loan debt have put Americans farther in debt than ever before. As of the end of last year, consumer debt topped $4 trillion, according to the Federal Reserve.
Even though total debt continues to rise, Americans have been able to handle it thus far. Based on their analysis of the Fed Data, LendingTree told CNBC that currently, consumers spend about 10 percent of their income on non-mortgage debts. During the Great Recession, that number was about 13 percent. LendingTree’s analysis also notes that only about 2.4 percent of credit cards holders are delinquent, and though more people are relying on credit, very few anticipate that they will miss a payment in the next 90 days.