U.S. Household Debt Surges At Fastest Pace Since 2008

U.S. household debt jumped by $351 billion to $16.5 trillion in the third quarter, according to a new report from the Federal Reserve. Debt balances now stand $2.3 trillion higher than pre-pandemic levels in 2019. According to the report, increased levels of credit card usage, and auto and mortgage loans made up a majority of the debt load as consumer prices remain near four-decade highs. This figure represents the fastest increase in U.S. household debt seen in over 15 years. 

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J.D. DURKIN: Alright, here's a look at what to watch on TheStreet today. As consumer prices remain near four decade highs, a new report shows that Americans are taking on a record amount of debt with credit card balances, specifically, seeing their largest annual jump in over 20 years. According to a new Fed report, overall, household debt is now surging at its fastest pace since 2008. And in the third quarter alone of this year, the collective household debt increased by more than $350 billion dollars, and that represents an over 8% jump from the same period just last year. Mortgage balances also made up a sizable portion of the debt load. These figures, quite honestly, come as no surprise as the current elevated levels of inflation coincide with strong consumer demand. Consumers are still spending big, even as prices on their everyday goods have risen as well. Stick with TheStreet for more on this and all of the major market stories that matter to you.