NEW YORK—Recession concerns—and the hard lessons learned by many—continue to move further into the rear view mirror as a new report shows consumers are taking on larger balances for auto loans and credit cards, pushing overall household debt levels higher.
According to Federal Reserve Bank of New York data, the 2Q total consumer outstanding credit card balance is $729 billion, an increase of $17 billion from the first quarter. Auto loan balances rose by $32 billion.
While balances rise, credit card delinquency rates have continued to improve since peaking in 2008, The Street reported, adding that just over 40% of cardholders overall carry a balance of $1,000 or less and 14% have balances over $10,000.
The quarterly report issued by the Federal Reserve Bank of New York's Center for Microeconomic Data stated that household debt increased by 0.3% or $35 billion to $12.29 trillion during the second quarter of 2016.
“Households appear to be gaining control of their other debt balances as mortgage debt declined by $7 billion in the second quarter and student loan balances were unchanged,” The Street stated.
The overall delinquency rates improved—4.8% of outstanding debt was in some stage of delinquency, a decline from 5% in the previous quarter.