The Federal Reserve Bank of New York reported that household debt rose to $17.3 trillion in the third quarter, with notable increases in credit card, student loan, and mortgage debt.
Credit card balances rose by $48 billion to $1.08 trillion, and loan delinquencies increased for most debt types, except for student loans.
The rise in credit card delinquency rates was especially pronounced among millennials and those with auto or student loans. (Trending: Donald Trump Loses His Cool At High-Stakes $250 Million Trial)
“Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth,” stated Donghoon Lee, Economic Research Advisor.
“The continued rise in credit card delinquency rates is broad-based across area income and region, but particularly pronounced among millennials and those with auto loans or student loans.”
Additionally, federal student loan payments will not be reported to credit bureaus until the fourth quarter of next year, resulting in low reported delinquency rates until then.