NEW YORK–Total U.S. household debt this year will reach a peak last seen in the third quarter of 2008, according to the New York Federal Reserve.
The New York Fed said household debt will hit $12.68 trillion during 2017.
Total household debt in Q4 2016 almost hit that point, at $12.58 trillion.
The New York Fed noted, however, that while the debt level is similar to 2008, the reasons for that debt have changed, as household incomes have increased in recent years, and housing and stock prices have improved.
According to the Fed, compared with 2008, fewer borrowers have housing-related debt — including their first mortgages, or home equity lines of credit — and instead more have taken on auto and student loans.
The Fed data show that in 2017 housing-related debt is down nearly $1 trillion since the 2008 peak, but auto loan balances are $367 billion higher, and student loans are a significant $671 billion higher. Credit card debt, however, is below where it was in 2008 and isn’t projected to surpass that figure until the Q4 2019.