Number of Auto Loans Surpass Mortgage Loans
The Federal Reserve Bank of New York released its Household Debt and Credit Report for Q4 2014. The results are unsurprising: more debt for mortgages, car loans, student loans, and credit cards.
The one percent increase puts total household indebtedness at $11.83 trillion as of December 31, 2014. Total debt has gone up $306 billion since the fourth quarter of 2013.
We found a couple of the charts revealing and informative, particularly when put into historical context.
This is a chart of the total number of ‘accounts’ for each class of household debt. Americans have over 400 million credit card accounts (isn’t that more than the population?).
Since the subprime auto loan boom began (over 35% of new car loans are made to subprime borrowers), the number of car loans has surpassed the number of first mortgage loans in the US. That is astonishing and unprecedented. More people have car payments than mortgage payments, and we are sure there’s no shortage of families with a mortgage payment and more than one car payment.
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