Rising Incomes Mitigate Impact of Growing Household Debt
TL;DR Summary
US household debt has reached a record $17.94 trillion, with credit cards and auto loans seeing significant increases. Despite this, most households are managing their debt due to rising after-tax incomes, which have outpaced inflation for 18 months. The debt-to-income ratio has improved to 82% from 86% in 2019. However, delinquencies are still rising, indicating financial stress for some households. Factors contributing to higher debt include population growth, increased online spending, and high inflation, while a strong job market supports wage growth.
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