FEDERAL RESERVE BANK OF NEW YORK
RESEARCH AND STATISTICS GROUP â— MICROECONOMIC STUDIES
QUARTERLY REPORT ON
DEBT AND CREDIT
Household Debt and Credit Developments in 2013 Q41
Aggregate consumer debt increased in the fourth quarter by $241 billion, the largest quarter to quarter
increase seen since the third quarter of 2007. As of December 31, 2013, total consumer indebtedness was $11.52
trillion, up by 2.1% from its level in the third quarter of 2013. The four quarters ending on December 31, 2013 were
the first since late 2008 to register an increase ($180 billion or 1.6%) in total debt outstanding. Nonetheless, overall
consumer debt remains 9.1% below its 2008Q3 peak of $12.68 trillion.
Mortgages, the largest component of household debt, increased 1.9% during the fourth quarter of 2013.
Mortgage balances shown on consumer credit reports stand at $8.05 trillion, up by $152 billion from their level in
the third quarter. Furthermore, calendar year 2013 saw a net increase of $16 billion in mortgage balances, ending
the four year streak of year over year declines. Balances on home equity lines of credit (HELOC) dropped by $6
billion (1.1%) and now stand at $529 billion. Non-housing debt balances increased by 3.3%, with gains of $18
billion in auto loan balances, $53 billion in student loan balances, and $11 billion in credit card balances.
Delinquency rates improved for most loan types in 2013Q4. As of December 31, 7.1% of outstanding debt
was in some stage of delinquency, compared with 7.4% in 2013Q3. About $820 billion of debt is delinquent, with
$580 billion seriously delinquent (at least 90 days late or â€œseverely derogatoryâ€).
Delinquency transition rates for current mortgage accounts are near pre-crisis levels, with 1.48% of current
mortgage balances transitioning into delinquency. The rate of transition from early (30-60 days) into serious (90
days or more) delinquency dropped, to 20.9%, while the cure rate â€“ the share of balances that transitioned from 30-
60 days de