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August 14, 2018 | Household Debt Hits Record High $13.29 Trillion Led by Mortgages, Student Loans

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
A New York Fed report shows household debt hit a new record high of $13.29 trillion in the second quarter.

Inquiring minds are digging into the New York Fed Quarterly Report on Household Debt and Credit.

Total Debt

Mortgage Originations

Auto Loans by Credit Score

Credit Score Ratings: Equifax

“Lenders generally see those with credit scores 670 and up as acceptable or low-risk borrowers. Those with credit scores from 580 to 669 are seen as “subprime borrowers,” meaning they may find it more difficult to qualify for better loan terms. Those with lower scores – under 580 – fall into the “poor” credit range and may have difficulty getting credit or qualifying for better loan terms.”

At least 1/3 of the auto loan originations are subprime.

Loan Delinquency Status

Percent of Balance 90+ Days Late

Debt Slaves

The number of debt slaves rises every month.

Party on dudes. Your house, your education, and your stocks will bail you out. Right?

Mike “Mish” Shedlock

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August 14th, 2018

Posted In: Mish Talk

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