In the third quarter of this year, household debt increased at the fastest pace in 15 years, according to the Federal Reserve’s latest Quarterly Report on Household Debt and Credit.
Total debt jumped by $351 billion from July to September, the largest nominal quarterly increase since 2007, bringing the collective household debt in the U.S. to a new record of $16.5 trillion. That’s up 2.2% from the previous quarter, and 8.3% up from a year ago.
The biggest contributors to the debt load came from mortgage balances — which rose $1 trillion from a year ago — and credit card debt — which climbed $930 billion.
Mortgage balances have soared amid sharp increases in interest rates, with 30-year mortgages hovering around 7%.
New York Fed researchers attributed the credit card growth to “very robust” consumption, rising prices and consumers using substantial levels of savings that remain on accounts.
Related: When Will We Hit Peak Inflation?
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