February 22, 2014

Just Released: Who’s Borrowing Now? The Young and the Riskless!

From the Federal Reserve Bank of New York

Just Released: Who’s Borrowing Now? The Young and the Riskless!
Andrew Haughwout, Donghoon Lee, Wilbert van der Klaauw, and David Yun

According to today’s release of the New York Fed’s 2013:Q4 Household Debt and Credit Report, aggregate consumer debt increased by $241 billion in the fourth quarter, the largest quarter-to-quarter increase since 2007. More importantly, between 2012:Q4 and 2013:Q4, total household debt rose $180 billion, marking the first four-quarter increase in outstanding debt since 2008. As net household borrowing resumes, it is interesting to see who is driving these balance changes, and to compare some of today’s patterns with those of the boom period.

    The next two charts show contributions to changes in debt balances by borrower age, first when household credit was expanding rapidly in 2006, and then in 2013. For each age group, the charts show the percentage change in aggregate debt outstanding for each type. Thus, summing the numbers for a given loan type produces the overall percentage growth for that type over the relevant four-quarter period.

Change-in-Debt-by-Borrower-Age


Read more from Federal Reserve Bank of New York >>

No comments:

Post a Comment