A new report from WalletHub - which used data from the New York Federal Reserve - revealed that U.S. households' debt increased by $78 billion of household debt in the third quarter of this year.
The study claimed that collective debt is at an all-time high of $17.3 trillion heading into the fourth quarter of 2023. However, when adjusted for inflation the number is 7% below the historical maximum recorded in 2008:
Household debt has reached a record high ($17.3 trillion), but when you adjust for inflation, the total is 7% below its peak from 2008.
Household debt is at a record high ($17.3 trillion), but when you adjust for inflation, the total is 7% below its peak from 2008. Learn more from WalletHub’s new Household Debt Report: https://t.co/0afExQRQcI pic.twitter.com/hhk5QDkCp8
— WalletHub (@wallethub) November 7, 2023
The study stated that the average debt per household was $145,319 at the end of the third quarter (only about $13,631 per household lower than the maximum reported in the fourth quarter of 2008).
In a statement sent to The Hill, John Kiernan, editor-in-chief of WalletHub, said that the data is not good and that we will likely "enter the final months of the year with a lot of new debt":
Consumers typically rack up the most debt during the fourth quarter of the year as we spend excessively on holiday gifts and travel, so it’s not a good sign when we enter the final few months of the year with a lot of new debt (...) Given how Q3 played out, WalletHub is now projecting that U.S. households will end the year with $350+ billion more debt than they started with.
The report also found credit card debt increased to $1.08 trillion in the third quarter of this year. Likewise, mortgage debt increased by $20 billion.
